Ramkrishna Forgings plans Rs 12.25 crore IPO

The Kolkata based Ramkrishna Forgings Limited (RKFL) is entering the capital market with an initial public offering (IPO) of 61,25,000 equity shares of Rs 10 each at a premium of Rs 10 per share aggregating Rs 12.25 crore.

The issue will open for subscription on April 2 and close on April 10. The shares will be listed on the National Stock Exchange and Stock Exchange, Mumbai (BSE). Microsec India Ltd and Karvy Investor Services Ltd are the lead managers to the issue.

Mahabir Jalan, chairman, RKFL told reporters n Ahmedabad on Friday that the company, with an annual turn over of Rs 35 crore, plans to more than double its turnover by the close of the next financial year, by increasing installed capacity of 5,550 metric tonne per annum to 18,000 metric tonne in the next financial year. The company will set up another manufacturing unit in Jamshedpur to achieve a five fold growth in its exports.

"RKFL is an ISO 9002 approved unit accredited by BVQI since 2000 and has achieved the QS certification by BY BVQI in 2003 for manufacture and supply of open and closed plain carbon and low alloy steel forgings for railways, automobile and general engineering purposes" Jalan said.

"The proposed capacity expansion will make us the largest forging company in eastern India" he said.

"With the proposed expansion, we are targeting a turn over of over Rs 100 crore in the next financial year, which is more than double of our present turnover," said Naresh Jalan, managing director, RKFL.

"We are targeting exports of over Rs 50 crore in the next financial year. Over 50 per cent of our turnover will come from exports. Majority of our exports will to the countries like the US, Mexico and Canada," said Jalan.