Happy Forgings IPO will open for subscription from 19 December 2023. The company aims for an issue size of ₹1,008.59 Cr through this IPO.
Company Overview
| Full name | Happy Forgings Limited |
| Sector | Automobile & Ancillaries |
| Industry | Forgings |
| Company Website | https://happyforgingsltd.com/ |
About Company
Happy Forgings stands tall as the fourth-largest engineering-driven manufacturer of intricate and safety-critical heavy forged and highly precise machined components in India. Through its vertically integrated operations, the company delves into engineering, process design, testing, manufacturing, and the supply of diverse components. Its primary clientele includes original equipment manufacturers (OEMs) in the commercial vehicle manufacturing sector, both domestically and globally. In addition to serving automotive OEMs, it extends its expertise to manufacturers of farm equipment, off-highway vehicles, as well as industrial equipment and machinery for sectors such as oil and gas, power generation, railways, and wind turbine industries.
Happy Forgings holds the distinction of being a key supplier to each of the top five Indian OEMs in the medium and heavy commercial vehicle industry, based on market share. It also caters to four of the top five Indian OEMs in the farm equipment industry by market share. Impressively, long-standing customer relationships are a hallmark, with customers associated for more than a decade contributing 75.98%, 79.38%, and 80.67% to revenues from product sales in Fiscal 2023, 2022, and 2021, respectively.
As of 31 March 2023, the company has extended its services to customers across nine countries, including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America. With three strategically located manufacturing facilities, two in Kanganwal and one in Dugri, both in Ludhiana, Punjab, Happy Forgings has substantially increased its annual aggregate installed capacity for forging and machining. This capacity has surged from 67,000 MT and 29,500 MT as of 31 March 2021, to an impressive 107,000 MT and 46,100 MT as of 31 March 2023, respectively.
The Objectives of the Issue
- Purchase of equipment, plant, and machinery.
- Prepayment of all or a portion of certain outstanding borrowings availed by the Company.
- General corporate purposes.
Happy Forgings IPO Timetable
| IPO Opening date | 19 December 2023 |
| IPO Closing | 21 December 2023 |
| Basis of Allotment | 22 December 2023 |
| Initiation Refund | 26 December 2023 |
| Credit to Demat Account | 26 December 2023 |
| Listing Date | 27 December 2023 |
Happy Forgings IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,008.59 Cr – 11,865,802 shares |
| Fresh Issue | ₹400 Cr – 4,705,882 shares |
| Offer for sale | ₹608.59 Cr – 7,159,920 shares |
| Face value | ₹02 per share |
| Price Band | ₹808 to ₹850 per share |
| Lot size | 17 Shares |
| Shareholding pre-issue | 89,499,000 |
| Shareholding post-issue | 94,204,882 |
| Listing Exchange | BSE & NSE |
Happy Forgings IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 17 | ₹14,450 |
| Retail (Max) | 13 | 221 | ₹187,850 |
| S-HNI (Min) | 14 | 238 | ₹202,300 |
| S-HNI (Max) | 69 | 1,173 | ₹997,050 |
| B-HNI (Min) | 70 | 1,190 | ₹1,011,500 |
Happy Forgings IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Happy Forgings Financial Performance
| FY 2021* | FY 2022 | FY 2023 | H1 FY 2024* | |
| Revenue | 584.96 | 860.05 | 1,196.53 | 672.90 |
| Expenses | 473.75 | 674.06 | 922.25 | 516.47 |
| Net income | 86.45 | 142.29 | 208.70 | 119.30 |
| Margin (%) | 14.78 | 16.54 | 17.44 | 17.73 |
Happy Forgings Valuations & Margins
| FY 2021* | FY 2022 | FY 2023 | |
| EPS | 9.66 | 15.90 | 23.32 |
| PE ratio | – | – | 34.65 – 36.45 |
| RONW (%) | 13.40 | 18.07 | 21.12 |
| NAV | 72.09 | 88.0 | 110.43 |
| ROCE (%) | 16.13 | 19.38 | 24.24 |
| EBITDA (%) | 27.14 | 26.85 | 28.49 |
| Debt/Equity | 0.24 | 0.31 | 0.22 |
Company Promoters
- Paritosh Kumar, Ashish Garg, Megha Garg, Ayush Capital & Financial Services Private Limited, Garg Family Trust, Paritosh Kumar Garg (HUF) and Ashish Garg & Sons (HUF)
Promoter Holding
| Pre Issue Share Holding | 88.24% |
| Post Issue Share Holding | 78.60% |
Happy Forgings Lead Manager(s)
- JM Financial Limited
- Axis Capital Limited
- Equirus Capital Private Limited
- Motilal Oswal Investment Advisors Limited
Happy Forgings Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 022 4918 6060
Email: happyforgings.ipo@linkintime.co.in
Website: www.linkintime.co.in
Happy Forgings Contact Details
HAPPY FORGINGS LIMITED
H.B 220, Post Office – Rajgarh,
Village Dugri, Ludhiana– 141 421, Punjab, India
Phone: +91 161 5217162
Email: complianceofficer@happyforgingsltd.co.in
Website: www.happyforgingsltd.co.in
Happy Forgings Allotment Status
Happy Forgings IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Happy Forgings IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
