Happy Forgings IPO Sets Price Band at Rs 808-850

Happy Forgings initiated its initial public offering (IPO) for public bidding on December 19, 2023, with plans to conclude the process on December 21, 2023.

The company has commenced its journey in bicycle components and have since broadened its horizons. Currently, it operates three manufacturing facilities dedicated to producing safety-critical parts.

The components cater to various industries, including automotive, railways, agriculture, engine and power generation, oil and gas, as well as construction and mining.

IPO Price Band

The price band for Happy Forgings’ maiden public offer stands at Rs 808-850 per share. Investors have the option to bid for a minimum of 17 shares in one lot and in multiples thereafter.

Allottment of IPO Issue 

The offer has allocated around 50 percent to qualified institutional buyers (QIBs), 35 percent to retail investors, and 15 percent to non-institutional investors.

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Purpose of the Issue

Happy Forgings intends to utilize the net proceeds garnered from the IPO for several purposes. It includes the purchase of equipment, plant, and machinery, prepayment of debt, and addressing various general corporate requirements.

Company’s Financials

Happy Forgings recorded revenues of Rs 600 crore and a profit of Rs 116 crore for the six months ending September 2023. In FY23, its revenues grew by 39 percent, reaching Rs 1,196 crore. The company’s profit surged by 47 percent to Rs 209 crore.

Over FY21-23, the company displayed strong performance with a 43 percent CAGR in revenue, a 47 percent CAGR in EBITDA, and an impressive 55 percent CAGR in Profit After Tax (PAT).

Book-running lead managers

The issue’s book-running lead managers include JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital.

_{Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.}