• This is the 2nd RI from the company since Oct. 2022.
• The company has not paid any dividends post September 2015.
• It has reported inconsistency in its bottom lines for the reported periods.
• Based on its recent financial data, the RI appears fully priced.
• Sharp decline in promoter’s holding remains major concern.
• Only well-informed/cash surplus/risk seekers may park moderate funds for long term.
ABOUT COMPANY:
Hilton Metal Forging Ltd. (HMFL) is one of the technology leaders in the forging industry. The company is mainly engaged in manufacturing of stainless-steel forging flanges allied pipe fitting items and Valve Body bonnet for Oil and Gas Sector. The products include stainless steel forged flanges forged fittings and lap-joint stub-ends (seamless). The company provides services in the areas such as oil and gas sectors Petro chemical and refineries, marine and ship building paper and pulp and agricultural sectors.
The Company was incorporated on July 21 2005. The company was formed by converting the partnership. Initially the company was established as a proprietorship firm on September 13, 1997 with the object of export of pipe fittings. In the year 1999 the company was registered as a small scale industrial unit and they started manufacturing pipe fitting items like Stainless Steel Flanges & Stub Ends. In August 1 2003 a partnership Firm was formed under the name 'Hilton Forge' who took over the business of the proprietorship firm. In September 2004 the company commenced the commercial production on 16 ton Hammer.
HMFL has supplied more than 1500 forged wheels to various railway workshops across India. Hilton has also received a feasibility report from RITES Ltd, one of the Indian Railways official testing agency for development and supply of wheels.
It has also successfully developed and manufactured forged railway wagon wheelsets, marking a significant milestone in its railway components portfolio. Each wheelset comprises two forged wheels and one forged axle, with every coach or wagon requiring four such wheelsets. The newly developed wheelsets have been thoroughly inspected and approved by RITES, the authorized inspection agency. As of the date of this offer document, it had 64 employees on its payroll. It also hires contract workers as and when needed.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 11296551 equity shares of Rs. 10 each at a fixed price of Rs. 28.32 per share to mobilize Rs. 31.99 cr. The RI opens for subscription on January 05, 2026, and will close on January 12, 2026. The company is offering RI in the ratio of 14 for 29 to its eligible stakeholders as of the record date of December 26, 2025. The company is asking for full payment on application for the number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 0.86 cr. for this RI process, and from the net proceeds, it will utilize Rs. 8.00 cr. for working capital, Rs. 7.06 cr. for part funding capex on purchase of machineries, Rs.8.24 cr. for adjustment of loans from promoters, and Rs. 7.84 cr. for general corporate purposes.
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. 23.40 cr. will stand enhanced to Rs. 34.70 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 98.26 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total revenue / net profit, of Rs. 139.89 cr. / Rs. 6.69 cr. (FY24), Rs. 168.22 cr. / Rs. 6.18 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs.1.89 cr. on a total income of Rs. 110.45 cr. It has posted inconsistency in its bottom lines for the last two fiscals.
DIVIDEND POLICY:
The company has not paid any dividends since September 2015. 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. 43.85 on December 24, 2025, and opened on an ex-right basis at Rs. 39.50 on December 26, 2025. Since then, it has marked a high/low of Rs. 42.32 / Rs. 34.83. The scrip last closed at Rs. 34.96 as of December 31, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 108.86 / Rs. 33.10.
The promoters’ holding declined to 7.71% for the last quarter ended with September 30, 2025, against 27.39% for the quarter ended March 31, 2025. The counter is trading above the RI price, with well managed volume by the vested interest quarters.
Review By Dilip Davda on January 1, 2026
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
