Happy Forgings’ initial public offering (IPO) will open for public bidding today, December 19. The company is a manufacturer of heavy forgings and high-precision machined components.
Happy Forgings seeks to raise a total of Rs 1,008.59 crore via IPO. This would include a fresh sale of shares worth Rs 400 crore, in addition to an offer for sale of 71,59,920 shares by its promoter Paritosh Kumar Garg (HUF) and investor India Business Excellence Fund.
Happy Forgings IPO is a book built issue and will remain open for subscription till December 21.
Happy Forgings IPO Dates: Happy Forgings IPO opens for subscription on Tuesday, December 19, and will close on Thursday, December 21. The IPO allotment is expected to be finalized on December 22.
Happy Forgings IPO Price Band: Happy Forgings IPO price band is set at Rs 808 to Rs 850 per share.
Happy Forgings IPO Lot Size: The IPO lot size is 17 shares and the minimum investment amount required by retail investors is Rs 14,450.
Happy Forgings IPO Objective: The net proceeds from the IPO will be used to purchase equipment, plant and machinery and prepay outstanding borrowings.
Happy Forgings IPO Reservations: The company has reserved 50% of the shares in the IPO for Qualified Institutional Buyers (QIB), 35% of offer for Retail Investors and remaining 15% for Non-Institutional Investors (NII).
Happy Forgings IPO Listing: Happy Forgings IPO will list on both the stock exchanges – BSE and NSE, with a tentative listing date fixed on December 27.
JM Financial, Axis Capital, Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers of the Happy Forgings IPO, while Link Intime India Private Ltd is the IPO registrar.
Happy Forgings IPO Anchor Allotment: Happy Forgings Ltd on Monday garnered Rs 303 crore from anchor investors, ahead of its IPO opening today. The company has allocated 35,59,740 equity shares at Rs 850 per share to the 25 anchor investors, as per stock exchange filing.
Happy Forgings IPO GMP Today: Happy Forgings IPO GMP today, or grey market premium today, is Rs 430 per share, as per market observers. This indicates that Happy Forgings shares are trading at a premium of 50.59% to the issue price at Rs 1,280 apiece in the grey market.
Happy Forgings IPO Review:
Happy Forgings’s diversified product portfolio, coupled with its focus on margin-accretive and value-additive products, has contributed to its transition from a forging-led business to a leading player in the machined components manufacturing industry, said Anand Rathi Research.
It serves a wide range of industries for oil and gas, power generation, railways, and wind turbine sectors. The company is valuing at P/E of 38.4 times with a market cap of Rs 8,007.4 crore post issue of equity shares and return on net worth of 21.12 per cent. On the valuation front, we believe that the company is fairly priced. It was added with a ‘subscribe for long term’ rating.
Happy Forging is a well-experienced and fourth-largest manufacturer of complex machine components. The company shares a long-standing relationship with its large customer base. It has a diversified business model and a track record of consistent growth. The financial performance of the company has also been strong, said Swastika Investmart.
“Investors should remain mindful of certain dependencies. Reliance on the top 10 customers, potential pricing pressure from clients, and competition within the industry introduce some risks. Dependence on a limited number of suppliers also merits consideration. Happy Forgings’ attractive valuation, coupled with its impressive track record an promising outlook, makes it a worthy investment option for investors seeking exposure to the manufacturing sector
“The company emerges as the one-stop solution to cater to such market demand in the automotive and non-automotive segments. On the financial performance front, the company’s revenue, Ebitda and PAT grew at a CAGR of 43 per cent, 46.6 per cent and 55.4 per cent, respectively during the FY 2021-23 period. We recommend a ‘subscribe’ rating for the issue,” said StoxBox.
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