G S Auto BSE RI review - (Not Rated)

•    The company is in the business of manufacturing/marketing/trading in auto components.
•    It caters to OEM, replacement market and also exporting its products.
•    Though its top line marked down trends, bottom line posted growth for the reported periods.
•    Based on its last traded price and the financial data, the issue appears reasonably priced.
•    Investors may park moderate funds for medium to long term.

PREFACE:
The company is coming out with its Rights Issue for which is has fixed a record date as May 22, 2026, and the offer document is dated May 21, 2026, but till this morning (i.e., Monday June 01, 2026) it was not loaded on the designated exchange. We managed to get it from elsewhere.

ABOUT COMPANY:
G S Auto Intl. Ltd., (GSAIL), manufactures auto components, mainly for the commercial vehicle industry, and it works across all major segments of the auto component sector. Its manufacturing activity is categorized into three types of auto components, namely: Casting Components, Machined Auto Components and Forged Auto Components. GSAIL’s products are made at two manufacturing units located in Ludhiana (Punjab) and Jamshedpur (Jharkhand).

The company makes a wide range of suspension and related automotive parts. The Company focuses on making durable and safe products. Its plants are equipped with the required machinery, heat- treatment facilities, and strict quality checks so that every product meet required standards. It has Plant with more than ten thousand tons capacity furnace(s) melting 900 kgs metal along with Automatic (DISA) & Arpa moulding lines, Linear Moulding Machines & Mould Making Machines. As a manufacturing Company, over the years, it has multiplied capacities, built up technologies and invested in equipment that place it in a unique league. 

The company supplies its products in each of three verticals of automobile industry namely ‘Original Equipment Manufacturers’ (OEM), ‘After Sales Market’ (Replacement Market) and ‘Exports Market’, through a network of distributors, dealers, and retailers. It continues to grow by using new technologies, improving manufacturing practices, and staying focused on customer needs. It supplies parts to OEMs, off-highway vehicle manufacturers, and the aftermarket, and manufacture various suspension-related components. The offer document is silent on its employees’ strength data.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 29029160 equity shares of Rs. 5 each at a fixed price of Rs. 10 per share to mobilize Rs. 29.03 cr. The RI opens for subscription on June 02, 2026, and will close on June 10, 2026. The company is offering RI in the ratio of 2 for 1 to its eligible stakeholders as of the record date of May 22, 2026. The company is asking for 50% (i.e., Rs. 5.00 per share) application money for number of shares applied. Balance Rs. 5.00 to be paid by one or more subsequent calls as determined by the board of directors. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.75 cr. for this RI process, from the net proceeds, it will utilize Rs. 16.85 cr. for working capital, Rs. 1.96 cr. for capex on purchase of machinery for manufacturing units, Rs. 9.47 cr. for funding acquisitions of unidentified business for future growth and general corporate purposes. 

The RI is solely lead managed by the company itself., and Skyline Financial Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 7.26 cr. will stand enhanced to Rs. 21.77 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 43.54 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 151.06 cr. / Rs. 0.66 cr. (FY24), Rs. 145.36 cr. / Rs 1.23 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net profit of Rs. 2.01 cr. on a total income of Rs. 108.58 cr. It posted declining trends for its top lines, but marked growth in bottom lines for the reported periods. Its NAV stood at Rs. 3.46 per share as of December 31, 2025, indicating for negative carried forwards.

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: 513059 (FV Rs. 5).
The scrip last closed on cum-right basis at Rs. 31.01 on May 21, 2026, and opened on an ex-right basis at Rs. 18.20 on May 22, 2026. Since then, it has marked a high/low of Rs. 19.30 / Rs. 16.90. The scrip last closed at Rs. 16.93 as of May 29, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 22.18 / Rs. 15.34.

The promoters’ holding has been constant around 41.76% for the last three quarters ended on March 31, 2026. The counter is traded around Rs. 17 thus the RI is at a discount of around 41%.