HGI Automotives Pvt IPO

About HGI Automotives IPO

The IPO of HGI Automotives comprises only a fresh issue with no offer for sale. The fresh issue comprises up to 75,00,000 equity shares. The total offer size is up to 75,00,000 equity shares. The price band is ₹[TBA] per share.

HGI Automotives IPO opens on [TBA] and closes on [TBA]. The allotment of shares will take place on [TBA]. The credit of shares to the Demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

The lot size of shares in the IPO is [TBA]. The minimum number of lots in the IPO for retail investors is [TBA]. The minimum investment amount required by a retail investor is ₹[TBA] based on the upper price.

HGI Automotives is is non-ferrous pressure die cast components manufacturer and certified with ISO 9001:2015, IATF 16949:2016, ISO 14001:2015 & ISO 45001:2018, specialising in high-pressure die casting, machining and painting of non-ferrous components catering to various entities in the automotive, agriculture and white goods.

Objectives of HGI Automotives IPO

The company proposes to utilise the net proceeds received for:

• Prepayment or repayment of outstanding secured borrowings
• Meeting capex Requirement for purchasing plant and machinery
• General corporate purposes
• Issue related expenses

Industry Outlook

Die casting is a highly efficient metal forming method widely used in producing automotive parts. By pouring molten metal into precision moulds, die casting enables the creation of complex shapes with excellent dimensional accuracy and surface finish quality. This process is primarily used for non-ferrous alloys such as aluminium, magnesium, and zinc.

The automobile industry remains the largest consumer of die-cast and machined components in India, accounting for a substantial share of overall demand. With vehicle production steadily increasing across passenger cars, commercial vehicles, and two-wheelers, the need for precision-engineered components such as engine blocks, transmission housings, chassis parts, and structural elements have grown significantly.

These components are critical for enhancing performance, safety, and fuel efficiency, while also supporting the industry’s transition towards lightweighting and electrification. The shift towards electric vehicles (EVs) has further accelerated demand for high-quality die-cast parts, including motor housings, battery enclosures, and thermal management systems.

As India consolidates its position as a global hub for automotive manufacturing, the symbiotic relationship between the auto industry and the die-casting and machining sector is expected to strengthen further, opening opportunities for value addition, localisation, and export growth.

HGI Automotives Company Information

HGI Automotives is non-ferrous pressure die cast components manufacturer and certified with ISO 9001:2015, IATF 16949:2016, ISO 14001:2015 & ISO 45001:2018, specialising in high-pressure die casting, machining and painting of non-ferrous components catering to various entities in the automotive, agriculture and white goods.

The company produces a range of automotive sector components which are used in a wide spectrum of vehicles, including two-wheelers, four wheelers, heavy vehicles etc. and in white goods for washing machine, compressor and industrial application.

Strengths of HGI Automotives

• Customised manufacturing capability
• Established client relationships
• Integrated manufacturing infrastructure
• Established market setup and diversified product range
• In-house testing and quality assurance
• Experienced promoters and management team
• Efficient inventory and process control via ERP
• Focus on cost optimisation and scalability

Risks of HGI Automotives

• Concentration of manufacturing facility, reliance of local infrastructure may increase vulnerability of operations of the company
• Failure to identify and understand evolving industry trends and preferences and to develop new products to meet customers’ demands may materially adversely affect business
• Registered office cum manufacturing plant at unit-I and unit-II are not owned by the company
• Loss of any customers or a significant reduction in purchases by any of them and if customers opt for backward integration, it could adversely affect business
• Loss of any of these suppliers or a significant reduction in purchases from any of them, it could adversely affect business

Anchor Investor Bidding Date

NA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: KFin Technologies
• Book Running Lead Manager: Nirbhay Capital Services

HGI Automotives Business Model

The product portfolio of HGI Automotives encompasses a diverse range of aluminium & zinc components such as inside rear-view mirror, base frames for mirror, brackets for wiper, housing, engine parts, brake parts, FFD, PCB cover, manifold, pump body, starter motor & pulleys/inner hub for washing machine and head covers for compressor, etc.

HGI AutomotivesCompany Growth Trajectory

The revenue from operations of HGI Automotives increased from ₹84.0927 crores in FY 23 to ₹121.3733 crores in FY 25. EBITDA margin increased from 8.83% in FY 23 to 15.28% in FY 25, while net profit margin saw a rise from 2.52% in FY 23 to 7.07% in FY 25. Established client relationships and integrated manufacturing infrastructure have helped the company grow over the years.

HGI AutomotivesMarket Position

The manufacturing operations of HGI Automotives commenced in April 1999 at a facility which was initially on lease. After one year, the company relocated to a larger premises to accommodate growing operational needs and continued manufacturing activities there for approximately 12 years, until November 2012.

The company has cultivated long-standing relationships with reputed customers who either distribute its components under their own brands or integrate them into their final products. These relationships are built on consistent quality, timely deliveries, and its ability to align production schedules with the customer’s supply chain requirements.

How to Apply for HGI Automotives IPO?

To apply for HGI Automotives IPO:

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.