Happy Forgings IPO: Happy Forgings Limited IPO Details

Happy Forgings IPO: IPOs (Initial Public Offerings) are often seen as a key indicator of a company’s growth and the opportunity for investors to participate in its future success. One such IPO that has garnered attention recently is the Happy Forgings Limited IPO. Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. In this blog, we will take a closer look at the details and prospects of the Happy Forgings Limited IPO.

Also See: Happy Forgings IPO GMP

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Happy Forgings IPO Details

The Happy Forgings IPO is a book-built issue with a total issue size of 11,865,802 shares, aggregating up to ₹1,008.59 crores. This offering consists of a fresh issue of 4,705,882 shares, amounting to ₹400.00 crores, and an offer for sale of 7,159,920 shares, totaling ₹608.59 crores.

Here are some key details of the Happy Forgings Limited IPO:

IPO NameHappy Forgings IPO
IPO DateDecember 19, 2023, to December 21, 2023
Basis of AllotmentFriday, December 22, 2023
Listing DateDecember 27, 2023
Face Value₹2 per share
Price Band₹808 to ₹850 per share
Lot Size17 Shares
Total Issue Size11,865,802 shares (₹1,008.59 Cr)
Fresh Issue4,705,882 shares (₹400.00 Cr)
Offer for Sale7,159,920 shares (₹608.59 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE

Also See: Upcoming IPO in India

Happy Forgings IPO Reservation and Lot Size

Investor categories for the Happy Forgings IPO include:

  • QIBs (Qualified Institutional Buyers) can bid for not more than 50% of the net issue.
  • Retail investors are guaranteed not less than 35% of the net issue.
  • NII (Non-Institutional Investors or HNIs) are entitled to not less than 15% of the net issue.

The lot size for this IPO is 17 shares, and investors can bid for a minimum of 17 shares and in multiples thereof. The investment requirements for different categories are as follows:

ApplicationLotsSharesAmount
Retail (Min)117₹14,450
Retail (Max)13221₹187,850
S-HNI (Min)14238₹202,300
S-HNI (Max)691,173₹997,050
B-HNI (Min)701,190₹1,011,500

Also Read: Benefits and Risks of Investing in IPOs: A Comprehensive Guide

Happy Forgings IPO Promoter Holding

The promoters of Happy Forgings Limited include Paritosh Kumar, Ashish Garg, Megha Garg, Ayush Capital & Financial Services Private Limited, Garg Family Trust, Paritosh Kumar Garg (HUF), and Ashish Garg & Sons (HUF). The pre-issue shareholding of the promoters stands at 88.24%, which is expected to reduce to 78.60% post-issue.

Objectives of the Happy Forgings IPO

Happy Forgings Limited intends to utilize the net proceeds from the fresh issue for the following purposes:

  1. Purchase of equipment, plant, and machinery.
  2. Prepayment of all or a portion of certain outstanding borrowings availed by the Company.
  3. General corporate purposes.

Also Read: Medi Assist Healthcare Services and Appejay Surrendra Park Hotels Receive SEBI Nod for IPOs

Financial Performance

Happy Forgings Limited has exhibited impressive financial growth. Between the financial years ending on March 31, 2023, and March 31, 2022, the company’s revenue increased by 38.81%, and its profit after tax (PAT) rose by 46.67%. This robust financial performance is a positive sign for potential investors.

Period Ended30 Sep 202331 Mar 202331 Mar 202231 Mar 2021
Assets1,489.801,326.171,129.87876.38
Revenue675.731,202.27866.11590.81
Profit After Tax119.30208.70142.2986.45
Net Worth1,103.33988.31787.62645.16
Reserves and Surplus1,088.25978.66769.72636.21
Total Borrowing258.97218.52240.35153.47
Amount in ₹ Crore

Also Read: How to open trading account in Upstox online

About Happy Forgings Limited

Founded in July 1979, Happy Forgings Limited specializes in designing and manufacturing heavy forgings and high-precision machined components. The company produces a wide range of products, including crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies, serving various industries and customers.

Some notable customers of Happy Forgings Limited include AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, Bonfiglioli Transmissions Private Limited, Dana India, IBCC Industries (India) Private Limited, JCB India Limited, and others. The company has a global reach, with customers in countries such as Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America.

Happy Forgings Limited operates three manufacturing facilities, two in Kanganwal and one in Dugri, all located in Ludhiana, Punjab. As of FY 2023, the operational revenue of the company has increased by 43.02%.

Key Performance Indicators (KPIs)

Here are some key performance indicators for the Happy Forgings IPO:

  • Market Cap: ₹8007.42 Cr
  • P/E (Price-to-Earnings ratio): 36.45
  • Post P/E: 33.56
  • ROE (Return on Equity): 21.12%
  • ROCE (Return on Capital Employed): 24.24%
  • EPS (Earnings per Share): ₹23.32
  • RoNW (Return on Net Worth): 21.12%

These KPIs provide valuable insights into the company’s financial health and performance.

Registrar and Lead Managers

The registrar for the Happy Forgings IPO is Link Intime India Private Ltd, and the lead managers are Jm Financial Limited, Axis Capital Limited, Equirus Capital Private Limited, and Motilal Oswal Investment Advisors Limited.

Happy Forgings IPO Timeline

The tentative schedule for the Happy Forgings IPO is as follows:

  • IPO opens on December 19, 2023.
  • IPO closes on December 21, 2023.
  • Basis of Allotment on December 22, 2023.
  • Refunds initiated on December 26, 2023.
  • Shares credited to Demat accounts on December 26, 2023.
  • Listing date on December 27, 2023.
  • Cut-off time for UPI mandate confirmation: 5 PM on December 21, 2023.
Happy Forgings IPO

Conclusion

The Happy Forgings Limited IPO presents an opportunity for investors to become a part of a company with a strong track record in manufacturing heavy forgings and high-precision machined components. With its impressive financial performance and a global customer base, the company has the potential for future growth. However, as with any investment, it’s important for investors to conduct their own due diligence and consult with financial experts before making investment decisions. Happy Forgings Limited’s IPO is expected to be closely watched by the market, and its success could pave the way for further growth and expansion.

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