Kay Jay Forgings Ltd. on Wednesday filed its preliminary papers with the capital markets regulator SEBI to raise funds via an initial public offering. The public offer will include fresh issues of shares worth Rs 300 crore and offer for sale of up to Rs 600 crore.
Gopal Krishan Kothari, Amit Kothari, Madhu Kothari, Madhu Kothari and G K Kothari & Sons are the promoters offloading stake in the OFS.
The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd. The company, in consultation with the BRLMS, may consider an issue of equity shares aggregating up to Rs 40 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
PL Capital Markets Pvt. is the book-running lead manager for the issue and Bigshare Services Pvt. will be the registrar of the issue.
Kay Jay intends to utilise the net proceeds from the fresh issue towards capital expenditure and debt reduction. The company will use Rs 118.8 crore towards setting up a new forging facility, machining facility and solar power plant. In addition, Rs 90.51 crore will be used for repayment or prepayment of certain borrowings. The remaining funds will be allocated for general corporate purposes.
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The Ludhiana-based company is a B2B precision engineering company engaged in the manufacturing of machined components, primarily catering to original equipment manufacturers (OEMs) in the automotive sector.
The company has developed a diversified portfolio of 286 products. Its product portfolio includes crankshafts and crankshaft assemblies as core offerings, along with lower bracket assemblies, lever kick-starter assemblies, gear-shift lever assemblies, propeller shafts, door hinges and steering yokes.
Among its key customers, TVS Motor Company Limited represents the longest-standing relationship, spanning over 37 years. Other customers include Honda Motorcycle & Scooter India, Mahindra & Mahindra, Bajajsons, Highway Roop Precision Technologies and Narasipur Auto Components.
The company reported a revenue from operations of Rs 750.46 crore for the financial year 2025, up from Rs 672.31 crore in fiscal 2024. Profit rose to Rs 29.01 crore in fiscal 2025, while Ebitda rose to Rs 71.40 crore.
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