Forge Auto International Limited, a leading manufacturer, exporter, and OEM supplier of drop-forged and machined components, has announced the acquisition of 100% stake in Forge Mach Auto Private Limited (FMAPL). This acquisition, approved by the Board of Directors on August 27, 2025, marks a significant milestone in Forge Auto’s strategic growth plan to expand its machining capabilities and strengthen its position in emerging markets.

Details of the Acquisition

The acquisition involved 10,00,000 equity shares of Rs. 10 each, purchased at Rs. 24.01 per share. FMAPL is now a wholly-owned subsidiary of Forge Auto International Limited, ensuring complete control over its operations and strategic direction.

The transaction was undertaken at arm’s length as verified by the valuation report of an IBBI-registered valuer, and the promoters of Forge Auto, including Mr. Parmod Gupta and Mr. Rajan Mittal, hold direct and indirect 100% shareholding in FMAPL.

Strategic Objectives

The acquisition is aimed at:

• Expanding the machining array for forged components, enabling Forge Auto to deliver a wider range of products to clients.

• Accelerating revenue growth through diversified offerings and entry into emerging markets and trade corridors.

• Strengthening Forge Auto’s competitive edge in the forged and machined components industry across India.

About Forge Mach Auto Private Limited

FMAPL, incorporated under the Companies Act, 2013 on July 14, 2022, specializes in the machining of forged and casting components at its facility in Ludhiana, Punjab, with an installed capacity of 21 lakh pieces per annum.

The company’s turnover over the last three fiscal years has been:

• FY 2024-25: Rs. 23.10 Crores

• FY 2023-24: Rs. 0.02 Crores

• FY 2022-23: Nil

FMAPL currently operates in India and focuses on providing high-quality machined components for industrial applications.

Benefits for Stakeholders

The acquisition is expected to create significant value for stakeholders by:

• Enhancing Forge Auto’s product portfolio and manufacturing capabilities.

• Opening new revenue streams through market diversification.

• Strengthening Forge Auto’s position in the OEM and export market for forged components.

Regulatory Compliance

The acquisition has been completed in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and related SEBI circulars. No governmental approvals were required for this transaction.

Conclusion

With the acquisition of Forge Mach Auto, Forge Auto International Limited demonstrates a strong commitment to growth, innovation, and market leadership. The move is set to enhance production capabilities, boost revenues, and expand the company’s presence in domestic and emerging international markets, making it a pivotal step in the company’s long-term success strategy

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.