Upcoming IPO: Kay Jay Forgings files draft papers with SEBI for ₹360 crore IPO
Kay Jay Forgings has filed a draft red herring prospectus with SEBI for an IPO, seeking up to ₹300 crore through new equity shares and ₹60 crore from an offer for sale. Funds will support capital expenditures and debt reduction.
Kay Jay Forgings has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
The proposed offering includes a new issue of equity shares totaling up to ₹300 crore, along with an offer for sale (OFS) of up to ₹60 crore from current shareholders.
The company plans to use the net proceeds from the new issue for capital expenditures and reducing debt. Of this, ₹118.8 crore is intended for establishing a new forging facility, a machining facility, and a solar power plant, while ₹90.51 crore will be allocated to the repayment or prepayment of specific loans. The remaining funds will be set aside for general corporate purposes.
The company might explore a pre-IPO placement of as much as ₹40 crore, in discussion with the book running lead manager, and if it proceeds, the amount of the fresh issue will be adjusted accordingly. PL Capital Limited is serving as the exclusive book running lead manager for the issue.
Company details
Kay Jay Forgings is a B2B precision engineering firm that specializes in the production of machined components, primarily serving original equipment manufacturers (OEMs) in the automotive industry, as well as a few non-automotive sectors like agricultural machinery, mining equipment, and electronic home appliances.
The company operates six manufacturing plants situated in Ludhiana, Punjab, and Hosur, Tamil Nadu, covering a total built-up area of around 46,795 square meters.
Among its key clients, TVS Motor Company Limited has the longest-standing partnership, which has lasted over 37 years. Other clients include Honda Motorcycle & Scooter India, Mahindra & Mahindra, Bajajsons, Highway Roop Precision Technologies, and Narasipur Auto Components.
In FY25, the company reported operational revenue of ₹750.46 crore, an increase from ₹672.31 crore in FY24. The profit after tax (PAT) rose to ₹29.01 crore in FY25, up from ₹24.12 crore in FY24, and EBITDA improved to ₹71.49 crore from ₹64.71 crore during the same timeframe. For the six months ending on September 30, 2025, the PAT was ₹21.35 crore.
The company's publicly traded competitors include Ramkrishna Forgings Limited, Kalyani Forge Limited, Saner Engineering Limited, and Rolex Rings Limited.
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