Mohali-based Jai Parvati Forge Limited files DHRP for IPO

Mohali - based Jai Parvati Forge Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO) crore.

 

The IPO, with a face value of Rs 2, is a fresh issue for up to Rs 300 crore and an offer-for-sale for up to 9,000, 000 equity shares by promoter – Suman Chauhan.

The company, in consultation with the book-running lead managers, may consider a Pre-IPO Placement, prior to filing of the Red Herring Prospectus with the RoC. If the pre-IPO placement is completed, the amount raised pursuant will be reduced from the Fresh Issue.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

Incorporated in 2004, the company has established itself as an integrated manufacturer of forged and machined components with over 22 years of operating history, supplying bull gears, transmission gears & shafts and precision machined parts. The company manufactures components involving complex geometries, tight dimensional tolerances, stringent surface-finish requirements and multiple manufacturing operations, supported by its integrated capabilities across design and engineering, die manufacturing, forging, heat treatment, gear manufacturing, precision machining and finishing.

It supplies transmission, driveline, axle and hydraulic components in the 1 kg to 70 kg range to OEMs across the tractor, commercial vehicle, off-highway and industrial segments (Source - CRISIL Report). Over the last three fiscals, the company has recorded the highest revenue growth on a compounded annual growth (CAGR) amongst the selected listed peers (Source - CRISIL Report). The company specializes in the manufacture of bull gears and holds an estimated 17.4% share based on value and 18.4% share based on volume of the bull gears market in Fiscal 2026, demonstrating its longstanding presence and established position within the tractor segment (Source - CRISIL Report).

The company operates an integrated manufacturing business model with capabilities across the value chain including product design support, die development, forging, heat treatment, precision machining, gear cutting, gear tooth grinding, induction hardening and sub-assembly operations. Its integrated operations enable it to supply products at multiple stages of value addition including raw forgings, rough and finished precision machined parts, semi-finished and finished gears and shafts, and assembled sub-components.

Currently, the company operates four manufacturing units, comprising three units located in Punjab and one unit located in Himachal Pradesh with aggregate installed capacity of 32,100 tonnes for forging and over 3.26 million units per annum for machining components.

Its manufactured components have been supplied to customers across international markets, including Belgium, Italy, Turkey and the United States of America, and while a substantial majority of its revenue from operations is derived from the sale of products within India, its international business presence has grown over the recent years, with revenue generated from sales in foreign markets contributing approximately 2.21% , 1.19% and 0.03% of total revenue from sale of its products in Fiscals 2026, 2025 and 2024, respectively.

The company has received ISO 9001:2015 certification and IATF 16949:2016 certification for its quality management systems relating to the manufacture of forged and machined components. Additionally, manufacturing unit II and manufacturing unit IV, its machining facilities from which a major portion of its products are supplied, have been certified under ISO 14001:2015 for Environmental Management Systems (EMS) and ISO 45001:2018 for Occupational Health and Safety Management Systems (OHSMS).

Its manufacturing operations are supported by an in-house metallurgical laboratory and a team of experienced technical personnel, enabling it to undertake comprehensive mechanical and chemical testing of its products. These capabilities assist the company in maintaining stringent quality standards and product tolerances in accordance with applicable international specifications and standards, including ISO, BS, DIN, ASTM, AGMA and JIS standards.

As of Fiscal 2026, the company’s manufacturing units had an aggregate installed forging capacity of 32,100 tones per annum and a machining capacity of over 2.20 million components per annum. Further, pursuant to its acquisition of D.S. Engineers, the erstwhile sole proprietorship concern of the Promoter, Suman Chauhan, the company has acquired manufacturing unit IV located in Solan, Himachal Pradesh, spread across approximately 61,419 square feet with an aggregate covered area of approximately 17,640 square feet, increasing its installed machining capacity by approximately 0.86 million components per annum, taking its aggregated machining capacity to approximately 3.26 million components per annum, effective as at April 1, 2026.

Collectively, these manufacturing units support its forging and machining operations.

The company manufactures a diversified product portfolio comprising over 800 active products catering to a wide range of applications across tractors and agriculture equipment, commercial vehicles, off-highway vehicles, and industrial application segments.

During Fiscals 2026, 2025 and 2024, the company offered and sold 719, 635 and 607 unique stock keeping units (SKUs), respectively. Its products are used in critical applications such as transmission systems, final reduction drives, planetary drive systems, axle assemblies, steering systems, hydraulic systems and windmill gearboxes.

Broadly, its product portfolio can be categorized into bull gears, gears and shafts, and precision machined parts. Gears and shafts are further categorized into transmission gears and shafts and planetary reduction parts, while precision machined parts comprise axle and chassis components, hydraulic parts and semi-machined components forming part of the aforementioned categories.

Machining represents a downstream stage of its integrated manufacturing process, and the parts manufactured under its machining operations include bull gears, gear and shafts, and precision machined parts (Machined Components).

Its products are used in transmission systems, axles, hydraulic systems and drivetrain applications across multiple industries. Its manufacturing operations are supported by in-house metallurgical and metrology testing infrastructure, including spectrometers, tensile testing equipment, coordinate measuring machines (CMM), optical measuring machines (OMM), computer numerical control (CNC) gear testers, ultrasonic testing systems, contour tracers, digital air gauging systems and crack detection systems.

Its manufactured products are sold primarily to OEMs and aggregate manufacturers in the tractors and agriculture equipment, commercial vehicles, off-highway vehicles, and industrial application segments.

Its key customers include Mahindra & Mahindra Limited, Ashok Leyland Limited, Escorts Kubota Limited, Carraro India Private Limited and International Tractors Limited. A significant portion of our revenue is derived from long-standing customer relationships and repeat business.

Its revenue from operations was Rs 420.4 crore during FY26 as compared to Rs 321 crore during FY24.

 

Its net profit was Rs 41.2 crore during FY26 as compared to Rs 23.8 crore during FY24. 

Beeline Capital Advisors Private Limited and Monarch Networth Capital Limited are the book-running lead managers, and MUFG Intime India Private Limited is the registrar of the issue.

The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.