The Securities and Exchange Board of India (SEBI) has approved the initial public offerings of Polite Powertech and Kay Jay Forgings during the week ended July 31. According to reports from Moneycontrol, The Economic Times, and ET Now, SEBI issued its observations on the IPO papers of Kay Jay Forgings on July 28 and Polite Powertech on July 31. The issuance of observations indicates that both companies are eligible to launch their initial public offerings within one year. As per SEBI's latest processing status, Polite Powertech filed its draft IPO papers on March 23, 2026, while Kay Jay Forgings filed on April 7, 2026.
Kay Jay Forgings, a Ludhiana-based precision engineering company specializing in integrated manufacturing of forged and machined components, is looking to raise ₹360 crore through its IPO. The IPO comprises a fresh issue of shares worth ₹300 crore and an offer for sale of shares worth ₹60 crore. The company is a business-to-business precision engineering firm that manufactures machined components mainly for original equipment manufacturers in the automotive sector, with a portfolio of 286 products. Crankshafts and crankshaft assemblies are its core products, along with lower bracket assemblies, lever kick-starter assemblies, gear-shift lever assemblies, propeller shafts, door hinges and steering yokes. The company holds an estimated domestic market share of about 36% in crankshafts and crankshaft assemblies for two-wheeler OEMs in India as of fiscal 2025, making it the largest supplier in this segment. Beyond automotive applications, the company also supplies specific non-automotive sectors, including agricultural machinery, mining equipment, and home electronic appliances. The company has expanded into components for three-wheelers, passenger vehicles, commercial vehicles, electric vehicles and non-automotive applications over the years, with crankshafts for two-wheelers having been a core product since inception.
Polite Powertech, a Surat-based power infrastructure EPC company, plans to raise funds through an IPO to meet its working capital requirements. The IPO comprises a mixed bookbuild issue of 1.25 crore equity shares, consisting of a fresh issue of up to 1 crore shares and an offer for sale (OFS) of up to 25 lakh shares by promoter Yogeshkumar Narottambhai Patel. Of the net proceeds from the fresh issue, ₹100 crore will be utilised for working capital requirements, while the remaining amount will be used for general corporate purposes. The company provides design, supply, installation, testing, and commissioning services for power transmission, distribution, and renewable energy projects across various states in India. The stock will be listed on both NSE and BSE, with Arihant Capital Markets Ltd. as the book running lead manager and Kfin Technologies Ltd. as the registrar. Carrying forward the operational legacy established under Patel Electricals since 2006, the company currently maintains an active presence across multiple Indian states with technical capabilities encompassing high-voltage transmission, underground power cabling, substation construction, and solar EPC solutions.
The proposed IPO comes at a time when auto component makers are seeing investor interest due to demand from passenger vehicles, two-wheelers, commercial vehicles and exports. Kay Jay Forgings supplies to select non-automotive segments such as farm equipment, mining equipment and electronic home appliances, with crankshafts for two-wheelers having been a core product since inception. The company has expanded into components for three-wheelers, passenger vehicles, commercial vehicles, electric vehicles and non-automotive applications over the years. The IPO approval comes amid growing investor interest in auto component manufacturers, fuelled by strong demand across passenger vehicles, two-wheelers, commercial vehicles, and export markets. Furthermore, precision engineering players are also gaining attraction as OEMs increasingly favour suppliers offering scale, broad product lines, and robust manufacturing capabilities. The company's listed peers include Ramkrishna Forgings, Kalyani Forge, Saner Engineering and Rolex Rings. Its shares are proposed to be listed on both BSE and NSE, with PL Capital Markets Pvt. Ltd. as the sole book running lead manager and Bigshare Services Pvt. Ltd. as the registrar.
As reported by Moneycontrol, Kay Jay Forgings intends to utilise ₹118.8 crore from the net fresh issue proceeds towards capital expenditure, including setting up new facilities for manufacturing forged and machined components, as well as establishing a solar power plant in Punjab. ₹90.5 crore will be used for debt repayment, while the remaining amount will be utilised for general corporate purposes. The company had filed its draft IPO papers with SEBI in March 2026.
According to Moneycontrol, Polite Powertech faces several internal risks including heavy revenue dependency on winning deal contracts through competitive bidding, where failure to qualify, bid competitively or win such contracts may materially and adversely affect the company's business, financial condition, results of operations, cash flows and growth prospects. The company also faces Gujarat concentration risk and receivables management challenges where incurrence of other operating expenses prior to receiving payments from clients may lead to higher funding requirements and disrupt business operations. As of September 30, 2025, a significant portion of total trade receivables (₹1,971.23 lakhs out of ₹7,055.78 lakhs, or 27.94%) had been outstanding for more than six months from their due dates, potentially leading to liquidity constraints.
According to Moneycontrol, Arihant Capital Markets and Valmiki Leela Capital have been appointed as the merchant bankers for the Polite Powertech IPO, while PL Capital Markets is the sole book-running lead manager for the Kay Jay Forgings IPO. Both companies had filed their draft IPO papers with SEBI in March 2026 and April 2026 respectively, setting the stage for their upcoming public offerings. Key details including IPO dates, price bands, and lot sizes are yet to be announced for both companies.
