Happy Forgings IPO

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 nameHappy Forgings Limited
SectorAutomobile & Ancillaries
Company Websitehttps://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 date19 December 2023
IPO Closing21 December 2023
Basis of Allotment22 December 2023
Initiation Refund26 December 2023
Credit to Demat Account26 December 2023
Listing Date27 December 2023
(Cut-off time for UPI mandate confirmation – 5 PM on December 21, 2023)

Happy Forgings IPO details

Issue typeBook 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 size17 Shares
Shareholding pre-issue89,499,000
Shareholding post-issue94,204,882
Listing ExchangeBSE & NSE

Happy Forgings IPO Lot Size

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

Happy Forgings IPO Reservation Details

QIB Shares Offered50%
NII (HNI) Shares Offered15%
Retail Shares Offered35%

Happy Forgings Financial Performance

 FY 2021*FY 2022FY 2023H1 FY 2024*
Net income86.45142.29208.70119.30
Margin (%)14.7816.5417.4417.73
(Amount in ₹ Crores)

Happy Forgings Valuations & Margins

FY 2021*FY 2022FY 2023
PE ratio34.65 – 36.45
RONW (%)13.4018.0721.12
ROCE (%)16.1319.3824.24
EBITDA (%)27.1426.8528.49

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 Holding88.24%
Post Issue Share Holding78.60%

Happy Forgings Lead Manager(s)

  • JM Financial Limited
  • Axis Capital Limited
  • Equirus Capital Private Limited
  • Motilal Oswal Investment Advisors Limited

Happy Forgings Registrar

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

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

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