Ganga Forging Limited has successfully completed its rights issue, which was oversubscribed by 120.14%, securing strong investor interest for its capital raise. The company issued 20,22,03,345 fully paid-up equity shares at a price of ₹1.63 per share, aggregating to ₹3295.91 lakhs. This capital injection follows a record date of July 02, 2026, and the subsequent opening and closing of the subscription window on July 10, 2026, and July 20, 2026, respectively.

The Board of Directors approved the basis of allotment on July 21, 2026, after finalizing details in consultation with the National Stock Exchange of India Limited (NSE) and MUFG Intime India Private Limited, the registrar to the issue. The company received a total of 3,037 applications through the Application Supported by Blocked Amount (ASBA) mechanism. Of these, 393 applications were rejected due to technical reasons, leaving 2,644 valid applications for 24,20,39,870 rights equity shares. No shares were kept in abeyance during the process.

Allotment Breakdown

The allotment was distributed between non-renouncees and renouncees based on their entitlements and additional applications. Non-renouncees accounted for the majority of the applications, while renouncees contributed significantly to the additional applied portion.

Subscription Details

Investors applied for a total value of ₹39,59,54,561.67, exceeding the total issue size of ₹32,95,91,452.35. Non-renouncees applied for ₹16.91 crore, while renouncees applied for ₹22.68 crore, demonstrating substantial participation from both investor categories. The company dispatched allotment advice-cum-unblocking intimation to investors on July 22, 2026, after executing corporate actions for credit of equity shares into demat accounts.

Trading in the fully paid-up equity shares issued in the rights issue commenced on July 23, 2026, following listing approval from the NSE on July 22, 2026. The company emphasized that the level of subscription should not be taken as indicative of either the market price of the equity shares or the business prospects of the company. Investors were advised to refer to the Letter of Offer dated June 25, 2026, for risk factors and detailed terms.

Ganga Forging Limited returned to profitability in the first quarter of FY26, reporting a standalone net profit of ₹105.82 lakh for the period ended June 30, 2026. This marks a significant turnaround from the net loss of ₹29.01 lakh posted in the corresponding quarter of the previous year. The company’s financial performance was bolstered by exceptional items and a reduction in total expenses, despite a decline in revenue from operations.

Revenue from operations for Q1FY26 stood at ₹718.50 lakh, a decrease from ₹774.55 lakh in Q1FY25. Total income for the quarter was ₹732.41 lakh, compared to ₹775.92 lakh in the same period last year. The company managed to control costs, with total expenses falling to ₹701.29 lakh from ₹831.28 lakh in the year-ago quarter. Profit before exceptional items and tax was ₹31.12 lakh, an improvement from the loss of ₹55.36 lakh in Q1FY25.

Exceptional items for the quarter included a charge of ₹65.00 lakh. Consequently, profit before tax for the quarter was ₹96.12 lakh, compared to a loss before tax of ₹19.71 lakh in the corresponding previous period. The tax expense showed a deferred tax credit of ₹9.70 lakh. Earnings per share (EPS) for the quarter were reported at ₹0.08 on a basic and diluted basis, compared to a loss per share of ₹0.02 in the same quarter last year.

The Board of Directors, in its meeting held on July 18, 2026, approved the standalone unaudited financial results for the quarter ended June 30, 2026. The results were reviewed by the Audit Committee and subsequently approved by the Board. M. N. Manvar & Co., Chartered Accountants, conducted the limited review of the financial results and issued an unqualified report.

In addition to the financial results, the Board approved the incorporation of a wholly owned subsidiary in the United Arab Emirates (UAE). The company stated that it operates in a single business segment manufacturing closed die forged products and does not require consolidation of financial statements as it currently has no subsidiaries, associates, or joint ventures. Revenue from Star Techno Mech Pvt. Ltd. exceeded 10% of the company's total revenue during the period under review.

Financial Summary for Q1FY26