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Ahmedabad: Sanghvi Forging and Engineering Limited, an ISO 9001:2008 Certified company engaged in the manufacturing and export of forging products, is entering the Indian Capital Markets with its Initial Public Offer ("IPO" / "Issue") aggregating 3690.02 Lacs. The price band of the issue has been fixed from Rs. 80 to Rs. 85 per share. The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Issue has been graded by CARE as CARE IPO GRADE 3 indicating Average Fundamentals.

The Issue will be through a 100% Book Building process wherein not more than 50% of the Issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), not less than 15% of the Issue shall be available to non-institutional bidders and not less than 35% of the Issue shall be available to retail individual bidders.

The Company is setting up 15,000 metric tonnes per annum (mtpa) open die forging unit (with single piece forging upto 40 MT) to manufacture proof machined products viz. stepped shafts, bars, hollows, blocks, flanged shafts, gear blanks, forging items etc. The cost of the project is estimated at Rs. 120.39 crores and has been appraised by State Bank of India. SBI and Bank of Baroda have also sanctioned term loan of Rs. 50 Crores and Rs. 22 Crores, respectively for the project. The proceeds of the present issue would be mainly used towards this project, and also meet the requirement of margin money for working capital for the New Project.

About Sanghvi Forging and Engineering Limited:

Sanghvi Forging & Engineering Limited (SFEL / the "Company"), is an ISO 9001:2008 Certified company engaged in the manufacturing and export of forging products for the non-automotive sector. The Company manufactures these products from carbon steel, alloy steel and stainless steel conforming to international standards. The key factor in forging business is the vendor/consultant approval due to the critical end use of the product. The Company has approval for the current products from its various clients and other industry bodies few of them being Mazagon Dock Limited, Larsen & Toubro Limited, BPCL, Indian Oil Corporation Limited, BHEL, BARC, Toyo Engineering India Limited etc from India and Kuwait National Petroleum Corporation, Kuwait, General Electric (GE), USA & Eurpoe, Petroleum Development Oman LLC, Sultanate of Oman etc from overseas.

On consolidated basis, the profitability of the company has increased from Rs. 247.86 Lacs in FY 2010 to Rs. 295.61 Lacs for the 9 months period ended December 31, 2010 registering a growth of 59% on an annualized basis.

Arihant Capital Markets Limited is the sole Book Running Lead Manager to the Issue.