Happy Forgings was incorporated on 2 July 1979. As of FY23, it is the fourth-largest engineering-led manufacturer of complex and safety-critical, heavy forged and high precision machined components in India in terms of forgings capacity. Through its vertically integrated operations, the company is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin-accretive and value-additive.
| Bidding Dates |
|---|
| 19 Dec 2023 - 21 Dec 2023 |
| Subscription |
|---|
| 82.04x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹13,736 | 1 | 13 | 17 | 11.9 M | ₹808 - ₹850 | 76.23 % | ₹9587.6 M - ₹10086.0 M | RHP DOC |
Happy Forgings IPO SUBSCRIPTION STATUS
21 Dec '23Happy Forgings IPO overall subscription rate was 82.04 times the total available shares
Happy Forgings IPO retail subscription rate was 15.09 times in the retail segment
Happy Forgings IPO non-institutional investor subscription rate was 62.17 times in the non-institutional investor category
Happy Forgings IPO Qualified Institutional Bidder subscription rate was 220.48 times the available shares for Qualified Institutional Bidder
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 25% | 15% | 50% |
21 Dec 2023 (Day 3) | 15.09x | 62.17x | 220.48x |
20 Dec 2023 (Day 2) | 7.41x | 16.5x | 0.45x |
19 Dec 2023 (Day 1) | 3.03x | 3.58x | 0.01x |
Happy Forgings FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| H1FY24 | 1,193.0 | 6,729.0 | 804.3 | -206.6 | 29.0% |
| H1FY23 | 1,164.0 | 5,998.0 | 700.9 | -181.7 | 30.3% |
| FY23 | 2,087.0 | 11,965.3 | 2,094.6 | 349.7 | 28.5% |
| FY22 | 1,422.9 | 8,600.5 | 802.9 | -1,105.5 | 26.9% |
| FY21 | 864.5 | 5,849.6 | 498.5 | -418.1 | 27.1% |
Happy Forgings IPO SUBSCRIPTION STATUS DETAILS
Happy Forgings had 11.9 M shares on offer
Happy Forgings IPO offer price was in the range ₹808 - ₹850
Happy Forgings IPO minimum Investment was ₹13736
Happy Forgings IPO issue size was ₹ 9587.6 M - ₹ 10086.0 M
Happy Forgings had a minimum lot size of 17 Shares per application
Happy Forgings NUMBER OF SHARES ON OFFER
Happy Forgings IPO IMPORTANT DATES
| Issue Open Date | 19 Dec 2023 |
| Issue close Date | 21 Dec 2023 |
| Allotment Date | 22 Dec 2023 |
| Refund Date | 26 Dec 2023 |
| Demat Account Credit Date | 26 Dec 2023 |
| Listing Date | 27 Dec 2023 |
| Listing on Exchange(s) | NSE and BSE |
| Happy Forgings Allotment Status | Exchange |
Happy Forgings IPO subscription opened on 19 Dec 2023, and closed on 21 Dec 2023
IPO allotment for Happy Forgings was finalized on Friday, 22 Dec 2023
IPO listing for Happy Forgings was on NSE and BSE on Wednesday, 27 Dec 2023
Happy Forgings IPO LISTING GAINS
| Issue Price (adjusted) | 850.0 |
| Listing Open Price | 1000.0 |
| Listing Close Price | 1030.8 |
| Listing Gain% | 17.6% |
| Current Gain% | 124.3% |
Happy Forgings Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Happy Forgings Ltd. | 1906.2 | 17957.3 | 54.9 | 2.5 | 11 | 14.2 | 11.4 | 1577.1 | 9 | 301.6 | 12.8 | 34.7 | 21.6 |
| Bharat Forge Ltd. | 2265.2 | 108296.6 | 97.7 | 5.5 | 6.4 | 11.3 | 4.8 | 17010.3 | 10.9 | 1079.7 | 14.7 | 23.2 | 17.7 |
| AIA Engineering Ltd. | 4776 | 44569.8 | 35.1 | 1.8 | 10.1 | 15.8 | 14.9 | 4893.9 | 6 | 1270.2 | 19.7 | 136.1 | 19.7 |
| Indo-MIM Ltd. | 867.4 | 42888.8 | 18.9 | 10.9 | 4320.7 | 28.1 | 533.5 | 25.9 | |||||
| Ramkrishna Forgings Ltd. | 726.6 | 13138.1 | 122.9 | -1.6 | 3 | 2.2 | 1 | 4251.2 | 4.7 | 71.8 | -82.7 | 5.9 | -78.7 |
| Balu Forge Industries Ltd. | 469 | 5693.9 | 22 | 0.8 | 5.1 | 16.2 | 14 | 1140.3 | 21.2 | 258.9 | 27 | 21.3 | 26.9 |
Happy Forgings INFORMATION ON IPO ISSUE
About Happy Forgings
Happy Forgings was incorporated on 2 July 1979. As of FY23, it is the fourth-largest engineering-led manufacturer of complex and safety-critical, heavy forged and high precision machined components in India in terms of forgings capacity. Through its vertically integrated operations, the company is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin-accretive and value-additive.
Object 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 - PROMOTERS
| Name |
|---|
| Paritosh Kumar |
| Ashish Garg |
| Megha Garg |
| Ayush Capital & Financial Services Private Limited |
| Garg Family Trust |
| Paritosh Kumar Garg (HUF) |
| Ashish Garg & Sons (HUF) |
Happy Forgings Book Running Lead Manager
JM Financial Limited
hfl.ipo@jmfl.com
Axis Capital Limited
hfl.ipo@axiscap.in
Equirus Capital Private Limited
hfl.ipo@equirus.com
Motilal Oswal Investment Advisors Limited
hfl.ipo@motilaloswal.com
Happy Forgings Registrar to the Offer
Link Intime India Private Limited
happyforgings.ipo@linkintime.co.in
Happy Forgings Strengths
Large manufacturer
The company is the fourth-largest engineering-led manufacturer of complex and safety-critical, heavy forged, and high-precision machined components in India
Diverse product portfolio
The company has integrated manufacturing operations coupled with in-house product and process design capabilities, resulting in a diverse product portfolio with continuous value addition
Track record
The company has a track record of consistently building capabilities and infrastructure, focusing on capital efficiency. It also has a track record of healthy financial performance
Happy Forgings Risks
Dependent on few customers
The company's business largely depends on its top 10 customers, who contributed 70.08%, 74.64%, and 79.22% in FY23, FY22, and FY21, respectively
Incurred indebtedness
The company has incurred indebtedness, and its inability to comply with repayment and other covenants in the financing agreements could adversely affect the business
Legal proceedings
The company, its promoters, and directors are or may be involved in certain legal and regulatory proceedings. Any adverse decision in these proceedings may have a material adverse effect on the business
IPO FAQs
This IPO consists of an offer for sale of up to Rs 608.6 crore, of 7,159,920 shares. It also consists of a fresh issue of Rs 400.0 crore.
The promoters of the company are Paritosh Kumar, Ashish Garg, Megha Garg, Ayush Capital & Financial Services Private Limited, Garg Family Trust, Paritosh Kumar Garg (HUF) and Ashish Garg & Sons (HUF).
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 25.0%.
The price band of the IPO is Rs 808.0 - 850.0.
The IPO application opens on Dec 19, 2023 and closes on Dec 21, 2023.
The minimum lot size for the IPO is 17. The maximum lot size for the IPO is 221.
For all category investors, the minimum application amount for this IPO is Rs. 13,736.0, the maximum value for this IPO is Rs 187,850.0.
This IPO will be allotted on Dec 22, 2023.
The refund will be credited to your account on Dec 26, 2023.
The allotted shares will be credited to your demat on Dec 26, 2023.
Happy Forgings Ltd.’s shares listed on the stock exchanges on Dec 27, 2023.