Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on March, 2026
• This is the 3rd RI from the company since October 2022.
• The company has marked average/inconsistent financial performances for the reported periods, which does not match the asking price.
• Based on its recent financial data, the issue appears aggressively priced.
• The promoters have increased their stake marginally.
• Well-informed/cash surplus investors may park moderate funds for medium term.
ABOUT COMPANY:
Hilton Metal Forging Ltd., (HMFL) is primarily engaged in the business of manufacturing of iron and steel forging mainly catering to the needs of the Oil and Gas, Refineries and Pharmaceutical industries.
The Company is one of the leading manufacturer, distributors and recognized export house of steel forged flanges, fittings & oilfield and marine products for both the domestic & international markets as per ASTM / ASME / MSS / API / AWWA / DIN / EN / AUSTRALIAN / RUSSIAN AND NACE Standards. The company uses state-of-the-art machinery resulting in better quality forged flanges and fittings and are also capable to provide special custom forgings as per customers’ drawings and specifications. As of the date of this offer document, it had 64 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its 2nd Rights Issue (RI) of 16770000 equity shares of Rs. 10 each at a fixed price of Rs. 16.68 per share to mobilize Rs. 27.97 cr. The RI opens for subscription on March 06, 2026, and will close on March 13, 2026. The company is offering RI in the ratio of 29 for 60 to its eligible stakeholders as of the record date of February 24, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 0.70 cr. for this RI process, and from the net proceeds, it will utilize Rs. 10.00 cr. for repayment of loans and debts, Rs. 8.00 cr. for adjusting unsecured loans from promoter, Rs. 3.00 cr. for working capital, and Rs. 6.27 cr. for general corporate purposes. The offer documents were not uploaded at BSE Website till 18.05 hrs. of March 04, 2026.
The RI is solely lead managed by the company itself., and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 34.70 cr. will stand enhanced to Rs. 51.47 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 85.85 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 139.89 cr. / Rs. 6.69 cr. (FY24), Rs. 168.22 cr. / Rs. 6.18 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net profit of Rs. 3.31 cr. on a total income of Rs. 180.62 cr. Its NAV stood at Rs. 50.81 as of December 31, 2025. The company’s website has garbled in its financial performance data as the links given in offer document does not guide to proper page and indications are misguiding.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532847 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 19.62 on February 23, 2026, and opened on an ex-right basis at Rs. 19.92 on February 24, 2026. Since then, it has marked a high/low of Rs. 19.92 / Rs. 16.80. The scrip last closed at Rs. 16.90 as of March 04, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 72.67 / Rs. 16.80.
The promoters’ holding increased to 13.74% for period ended January 14, 2026, from 7.87% for quarter ended December 31, 2025. The counter is currently well managed by vested interests and traded above the RI price, to tempt investors.
Conclusion / Investment Strategy
This is the 3rd RI from the company since October 2022. HMFL has marked average/inconsistent financial performances for the reported periods, which does not match the asking price. Based on its recent financial data, the issue appears aggressively priced. The promoters have increased their stake marginally. Well-informed/cash surplus investors may park moderate funds for medium term.
Review By Dilip Davda on March, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
