Forging New Issues

The markets have continued to do well through the beginning of this year. With the primary market on a revival path many companies have lined up with their IPOs. We started tracking these companies which are likely to hit the market with their issues so that you get to know beforehand as to whether the issue would be worth investing or not. Here is one such company which will shortly come to the markets with its IPO. GB Tools & Forgings (GBTF) is coming up with a public offering of equity shares worth Rs 40 crore. However, GBFT has not disclosed the number of equity shares to be offered by it. The company is also considering a pre-IPO placement of equity shares worth Rs 10 crore. Further, once the pre-IPO placement is completed, the issue size offered to the public would be reduced to that extent.

GBTF is in the business of manufacturing and exports of Drop Forge Hand Tools and allied forging products. The company's products are used in various industries such as mechanical, maintenance, automobile, engineering, construction, electrical and Do-It-Yourself segments. It markets its manufactured products under the brand name of “GB Tools” in various domestic and international markets. GBTF is recognised as a Star Export House by the Government of India since 2009.

The company was previously known as Ambika Forging and has been in the business of forging and hand tools since 1975. It is promoted by Gian Parkash Bhandari and currently, has two manufacturing facilities located at Jalandhar in Punjab and Kangra in Himachal Pradesh. GBTF's existing manufacturing facility consists of a forging shop, die shop, heat treatment shop, conventional and CNC machining shop, electroplating plant, powder coating plant, all backed by related quality assurance equipments.

GBTF intends to use its IPO proceeds for the purpose of expansion and modernisation of its existing hand tool manufacturing facility at Jalandhar. However, we will not be able to comment till as it has not disclosed the issue related specifics such as price band and number of equity shares on offer. Watch this space for more details on the issue.