Kay Jay Forgings IPO

About Kay Jay Forgings IPO

The Kay Jay Forgings 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 offer consists of both a fresh issue and an offer for sale component. The fresh issue will include [.] shares aggregating up to ₹300 crores. The offer for sale portion includes [TBA] shares of ₹5 aggregating up to ₹60 crores. The total number of shares is yet to be decided and the aggregate amount is up to ₹360 crores.

Kay Jay Forgings IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

Kay Jay Forgings is a precision engineering integrated manufacturer of forged and machined components, primarily catering to original equipment manufacturers in the automotive sector. Beyond the automotive sector, they also cater to OEMs and non OEMs in the non-automotive sector and supply farm equipment components, mining equipment components and electronic home appliances components.

Objectives of Kay Jay Forgings IPO

• Funding the capital expenditure requirements of the company towards: (a) Setting up of a new facility at Ludhiana, Punjab for manufacturing forged components (Proposed Forging Facility). (b) Setting up of a new facility at Ludhiana, Punjab for manufacturing machined components (Proposed Machining Facility). (c) Setting up of a solar power plant at Village Buttar Bakhua, Tehsil Gidderbaha, District Sri Mukatsar Sahib, Punjab (Proposed Solar Plant).
• Repayment / pre-payment, in full or in part of certain borrowings availed by the company.
• General corporate purposes.

Industry Outlook

India is the largest manufacturer of two-wheelers, three-wheelers and tractors. Overall, the domestic automobile industry sales are expected to grow with a CAGR of around 7%-9% over the period of FY26- 28. Exports are expected to remain robust in FY26 building on the healthy performance of recent years due to stable macroeconomic conditions, proactive government policies and Infrastructure spending by the Government. The Indian auto component industry is critical to the automobile OEM value chain. Looking ahead, Indian automotive forging market was valued at USD 2.6 billion in FY25, projected to reach USD 4.1 billion by FY30 at 6–8% CAGR, supported by domestic demand recovery, technology adoption and rising export competitiveness.

The domestic forging industry in India’s trajectory is expected to continue, reaching USD 750 crores by FY30, underpinned by increased manufacturing activity, infrastructure development and a rebound in automobile production volumes. The outlook towards the domestic automotive crankshaft industry spanning FY25 to FY30, projects an accelerated CAGR of 3-5%, signalling a significant shift in market dynamics. The increase in demand can be attributed to technological advancements, expanding automotive production and the growing focus on efficiency and durability in engine components. By FY30, the market size is anticipated to reach USD 57.390 crores, suggesting a healthy trajectory fuelled by both domestic and export opportunities

About Kay Jay Forgings

Kay Jay Forgings is a precision engineering integrated manufacturer of forged and machined components, primarily catering to original equipment manufacturers in the automotive sector. Beyond the automotive sector, they also cater to OEMs and non OEMs in the non-automotive sector and supply farm equipment components, mining equipment components and electronic home appliances components.

Their capabilities allow them to produce high‑precision components with tolerances ranging from 2 to 20 microns and weights from 0.10 kilograms to 5.10 kilograms. They operate as a B2B supplier for such components supplying their products primarily directly to their customers, including OEMs and non-OEM customers, across domestic and international markets.

Strengths of Kay Jay Forgings

• Long-standing relationships with customers and suppliers with a track record of repeat orders.
• Modern manufacturing facilities with in-house design and a sustained focus on enhancing their capabilities.
• Backward-integrated manufacturing operations enhancing quality and supply reliability.
• Product portfolio tailored to customer requirements with the capability to expand product portfolio.
• Consistent track record of financial performance and strong financial position.
• Experienced promoters, directors, key managerial personnel and senior management team and a skilled workforce.

Risks of Kay Jay Forgings

• Their business is dependent on certain key customers.
• They do not have any long-term agreements with their customers to purchase or place orders with them.
• A significant portion of their raw material procurement is carried out without long-term binding agreements.
• Their business is heavily dependent on the performance of the automotive sector.
• Their inability to improve operational efficiency, reduce costs, or effectively pass on increases in raw material prices to their customers.
• Their manufacturing operations are geographically concentrated in two regions, Ludhiana (Punjab) and Hosur (Tamil Nadu).
• Their business performance and profitability rely heavily on the availability and cost of steel, their primary raw material.
• They are dependent on their OEM customers for a significant portion of revenues from sale of products.

Source: Financial information for the company is derived from the Restated Financial Information as at and for the financial year ended March 31, 2025. Notes: Source: All the financial information for listed industry peer mentioned above is sourced from the annual audited financial results of the company for the year ended March 31, 2025 filed with stock exchanges.

Notes: i. Basic EPS and Diluted EPS refer to the Basic EPS and Diluted EPS sourced from the financial statements of the respective company.

ii. P/E Ratio has been computed based on the closing market price of equity shares (Source: BSE) on March 25, 2026, divided by the EPS provided.

iii. Return on net worth (RoNW) is computed as profit for the year attributable to common shareholders of the parent divided by net worth (excluding non-controlling interest), as at March 31, 2025.

iv. NAV per equity share has been computed as the net worth attributable to common shareholders (excluding non-controlling interest) divided by the total number of shares outstanding, as at March 31, 2025.

Anchor Investor Bidding Date: TBA

Registrar: Bigshare Services Private Limited
Book Running Lead Managers: PL Capital Markets Private Limited

Kay Jay Forgings Business Model

The company earns its revenue as a precision engineering integrated manufacturer of forged and machined components, primarily catering to original equipment manufacturers in the automotive sector. They also cater to OEMs and non-OEMs in the non-automotive sector and supply farm equipment components, mining equipment components and electronic home appliances components.

Kay Jay Forgings Growth Trajectory

Kay Jay Forgings ’s Total Income for FY25 was ₹752.211 crores, whereas in FY24 and FY23 it was ₹675.576 crores and ₹604.854 crores, respectively.

The Profit After Tax for FY25 was ₹29.015 crores, whereas in FY24 and FY23 it was ₹24.126 crores and ₹13.813 crores, respectively.

Their EBITDA for FY25 was ₹71.497 crores, whereas in FY24 and FY23 it was ₹64.710 crores and ₹50.085 crores, respectively.

Kay Jay Forgings Market Position

Among their OEM customers, TVS Motor Company Limited represents their longest continuing relationship, with an association of over 37 years. Their other customers include Honda Motorcycle & Scooter India Private Limited, Mahindra & Mahindra Limited, Bajajsons Limited, Highway Roop Precision Technologies Limited and Narasipur Auto Components Private Limited.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹752.211 crores, ₹29.015 crores, and ₹71.497 crores, respectively.

How to apply for Kay Jay Forgings IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.