Auto components manufacturer Kay Jay Forgings Ltd plans to raise Rs 360 crore via an IPO to fund capital expenditure and reduce debt. The IPO includes a fresh issue for Rs 300 crore and an offer for sale worth Rs 60 crore. Estimated market share for FY25 is 36 percent.

Kay Jay Forgings to Raise Rs 360 Crore with IPO for Expansion and Debt Reduction

Kay Jay Forgings Ltd, a leading auto components manufacturer, has announced its intention to raise Rs 360 crore through an Initial Public Offering (IPO) as per its draft papers filed with the Securities and Exchange Board of India (Sebi).

The IPO consists of a fresh issue worth Rs 300 crore and an offer for sale valued at Rs 60 crore by the promoters. The company, headquartered in Ludhiana, aims to use the proceeds from the fresh issue for capital expenditure, including setting up a new forging and machining facility, a solar power plant, and debt reduction.

Kay Jay Forgings, a precision engineering company supplying mainly to OEMs in the auto industry, holds a strong estimated 36 percent market share in the crankshafts segment for two-wheelers in India. The company's revenue showed growth in FY25, reaching Rs 750.46 crore with a profit after tax of Rs 29.01 crore.