Sanghvi Forging IPO to open on May 4

Forging products manufacturer Sanghvi Forging and Engineering is set to launch its Rs 36.9 crore initial public offering for subscription on May 4. The price band has been fixed at Rs 80-85 a share.

The company is a manufacturer and exporter of forging products for the non-automotive sector. It manufactures forged flanges, forgings and machined components for various industries like oil & gas, fertilizers, power, desalination & water treatment, ship building, defence, fabrication of process equipments, instrumentation etc.

Issue proceeds are proposed to be used for partly financing the cost of setting up 15,000 MTPA open die forging unit (with single piece forging up to 40 MT) to manufacture proof machined products viz. stepped shafts, bars & hollows, blocks, flanged shafts, gear blanks, forging items.

Some portion of proceeds will also be used for working capital for the new project and for pre-operative expenses including issue expenses. The issue closes on May 9.

Arihant Capital Markets Ltd is the book running lead manager to the issue.