14-Dec-2023
2 mins read
Happy Forgings’s upcoming Initial Public Offering (IPO) is structured as a book-built issue featuring a fresh issue worth Rs 400.00 crore and an offer for sale of 0.72 crore shares.The Initial Public Offering (IPO) for Happy Forgings Limited is scheduled to commence on December 19, 2023, and will be available for subscription through to December 21, 2023. Share allocations are anticipated to be finalised by December 22, 2023. Happy Forgings plans to debut on BSE and NSE, with an anticipated listing date of December 27, 2023. The price range for the IPO has not been announced yet. The IPO is being managed by JM Financial Limited, Axis Capital Limited, Equirus Capital Private Limited, and Motilal Oswal Investment Advisors Limited, with Link Intime India Private Ltd appointed as the registrar of the issue.
Happy Forgings Limited Product Portfolio
Founded in July 1979, Happy Forgings Limited is a prominent Indian firm specialising in designing, manufacturing, and testing heavy forgings and precision machined components. The company’s diverse product range includes crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies, catering to various industries and clients. Its notable clientele encompasses key players like AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, and many others, extending to global markets in Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the USA. With three manufacturing units in Kanganwal and Dugri, Ludhiana, and Punjab, Happy Forgings Limited has demonstrated significant growth, with a 43.02% increase in operational revenue as of FY 2023. By September 2023, the company had integrated 10 robots into its manufacturing processes. Key strengths of Happy Forgings include its integrated manufacturing and development capabilities, leading to a diversified product portfolio. The business model’s versatility allows the company to effectively leverage emerging motor technologies. The firm boasts long-standing relationships with diverse industry clients and a history of building capabilities and infrastructure efficiently. Under the guidance of experienced promoters and a senior management team, Happy Forgings continues to solidify its market presence.
The Objectives of Happy Forgings Limited IPO
Happy Forgings Limited plans to allocate the net proceeds from its Fresh Issue for several key purposes. Happy Forgings Limited aims to use the proceeds from the Fresh Issue for several strategic initiatives. This involves investing in new equipment, plants, and machinery to bolster their manufacturing capacity. A part of these funds will also be allocated to reduce a portion of the company’s existing debts. The rest of the proceeds are designated for a variety of general corporate purposes, which are essential for supporting the company’s expansive growth and strategic business operations.
Financial Performance of Happy Forgings Limited IPO (In Rs Crore)
| Period Ended | 31-Mar-23 | 31-Mar-22 |
| Assets | 1,326.17 | 1,129.87 |
| Revenue | 1,202.27 | 866.11 |
| Profit After Tax | 208.7 | 142.29 |
| Net Worth | 988.31 | 787.62 |
| Reserves and Surplus | 978.66 | 769.72 |
| Total Borrowing | 218.52 | 240.35 |
Important Dates for Happy Forgings Limited IPO
| IPO Date | December 19, 2023 to December 21, 2023 |
| Listing Date | Yet to be announced |
| Face Value | Rs 2 per share |
| Price | ₹808 to ₹850 per share |
| Lot Size | 17 Shares |
| Total Issue Size | Yet to be announced |
| Fresh Issue | Aggregating up to Rs 400.00 Cr |
| Offer for Sale | 7,159,920 shares of Rs 2 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 89,499,000 |
Timetable of Happy Forgings Limited IPO (Tentative)
| IPO Open Date | Tuesday, December 19, 2023 |
| IPO Close Date | Thursday, December 21, 2023 |
| Basis of Allotment | Friday, December 22, 2023 |
| Initiation of Refunds | Tuesday, December 26, 2023 |
| Credit of Shares to Demat | Tuesday, December 26, 2023 |
| Listing Date | Wednesday, December 27, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 21, 2023 |
Key Performance Indicator of Happy Forgings Limited IPO
| KPI | Values |
| ROE | 21.12% |
| ROCE | 24.24% |
| EPS (Rs) | 23.32 |
| RoNW | 21.12% |
IPO Reservation of Happy Forgings Limited IPO
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
IPO Reservation of Happy Forgings Limited IPO
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Promoters of Happy Forgings Limited IPO
Paritosh Kumar, Ashish Garg, Megha Garg, Ayush Capital & Financial Services Private Limited, Garg Family Trust, Paritosh Kumar Garg (HUF) and Ashish Garg & Sons (HUF) are the promoters of the company.
Promoter Holding of Happy Forgings Limited IPO
| Shareholding Pre Issue | 88.24% |
| Shareholding Post Issue |
Happy Forgings Limited IPO Lead Manager(s)
The lead manager for Happy Forgings Limited IPO is yet to be announced.
How to Apply for Happy Forgings Limited IPO
Wait for the public issue to open for subscription, then click on this link to apply for the Happy Forgings Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Happy Forgings Limited IPO
The registrar for Happy Forgings Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is the nature and size of the Happy Forgings Limited IPO?
The IPO is a book-built issue, comprising a fresh issue of Rs 400.00 crore and an offer for sale of 0.72 crore shares.
- When will the Happy Forgings IPO open and close for subscription?
The IPO is scheduled to open on December 19, 2023, and will close on December 21, 2023.
- What are the expected dates for share allotment and listing?
Share allotment is anticipated by December 22, 2023. The expected listing date on BSE and NSE is December 27, 2023.
- Who are the book-running lead managers for the IPO?
The lead managers include JM Financial Limited, Axis Capital Limited, Equirus Capital Private Limited, and Motilal Oswal Investment Advisors Limited.
- Where can I apply for the Happy Forgings Limited IPO?
You can apply for the IPO via the Bonanza Online IPO Application when it opens for subscription.
- How can I check the allotment status of the IPO?
The allotment status can be checked on Link Intime India’s website at Link Intime IPO Allotment Status.
- What is the face value and price band of the IPO?
The face value is Rs 2 per share, but the price band is ₹808 to ₹850 per share.
- Who are the promoters of Happy Forgings Limited?
The promoters include Paritosh Kumar, Ashish Garg, and others.
- What is the shareholding pattern pre and post-IPO?
Pre-IPO, the promoters hold 88.24%. The post-IPO holding will be updated after the issue.