Happy Forgings IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Dec 27, 2023Happy Forgings Ltd., a prominent contender in the auto components manufacturing sector, has embarked on a significant growth journey by filing the draft red herring prospectus (DRHP) with India’s capital markets regulator, the Securities and Exchange Board of India (SEBI).
This strategic move is aimed at securing funds in the range of Rs 1,200-1,300 crore through its forthcoming initial public offering (IPO), showcasing the company’s intent to leverage the capital market for expanding its ventures. Read on to learn more about the Happy Forgings IPO.
| Face Value | Rs 2 |
| Price Band | Rs 808 to Rs 850 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 17 Shares |
| Listing Date | December 27, 2023 |
| Offer for Sale | Rs 608.59 Crore |
| Fresh Issue | Rs 400.00 Crore |
| IPO Size | Rs 1,008.59 Crore |
| Tick Size | 1 |
Happy Forgings IPO Overview
Happy Forgings Ltd, a prominent player in the auto components manufacturing sector, has taken a significant step towards growth by filing the draft red herring prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (SEBI).
The company aims to raise funds in the range of Rs 1,200-1,300 crore through its upcoming initial public offering (IPO). This move reflects the company’s ambition to tap into the capital market to further its expansion and development plans.
The Happy Forgings IPO will consist of a combination of a fresh issue of equity shares amounting to Rs 400.00 crore and an offer for sale (OFS) of up to 80.55 lakh shares.
Happy Forgings is based in Ludhiana and is also considering a pre-IPO placement of shares, which could aggregate up to Rs 100 crore. In case this pre-IPO placement is successfully executed, the size of the fresh issue will be adjusted accordingly.
The OFS component of the IPO will involve the offloading of 53.7 lakh equity shares by Paritosh Kumar Garg (HUF) and up to 26.85 lakh equity shares by India Business Excellence Fund-III, the selling shareholder.
This dual-pronged approach of a fresh issue and an OFS indicates the company’s strategy to both raise capital for its future ventures and provide an exit opportunity for existing shareholders.
The Happy Forgings IPO is being managed by a consortium of well-known financial institutions including JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors.
These entities will function as the lead book-running managers, overseeing the process of bringing the IPO to market and facilitating investor participation.
Happy Forgings IPO Important Dates
| Events | Date |
| IPO Opening Date | December 19, 2023 |
| IPO Closing Date | December 21, 2023 |
| Basis of Allotment Finalization | December 22, 2023 |
| Refunds Initiation | December 26, 2023 |
| Credit of Shares to Demat Account | December 26, 2023 |
| Share Listing Date | December 27, 2023 |
The eagerly anticipated Happy Forgings Ltd IPO is generating excitement as investors await the announcement of key dates. While the specific timeline remains undisclosed, these dates hold vital significance for prospective investors.
They encompass the subscription period, share allotment, trading commencement, and other crucial milestones. The IPO’s prominence in the auto components manufacturing sector, coupled with its fundraising objectives, amplifies the interest.
As the company progresses towards listing, revealing the Happy Forgings IPO important dates will mark a pivotal juncture, allowing investors to engage thoughtfully and partake in the company’s growth story.
Stay tuned for official announcements, as these forthcoming dates will guide the course of the IPO and subsequent market activities.
Happy Forgings IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs 808 to Rs 850 |
| Offer for Sale | Rs 608.59 Crore |
| Fresh Issue | Rs 400.00 Crore |
| IPO Size | Rs 1,008.59 Crore |
Happy Forgings Ltd. has begun the IPO process to generate Rs. 1,200-1,300 crores. According to the DRHP, the IPO structure includes a 400.00-crore new issue of equity shares as well as a Happy Forgings IPO share offerings of up to 80.55 lakh shares by a promoter and a selling shareholder.
Notably, the business is exploring a pre-IPO share placement of up to 100 crores, which might result in a change in the size of the new issue once completed.
According to market sources quoted in a PTI article, the Happy Forgings IPO price will be worth between Rs. 1,200 and Rs. 1,300 crores.
The proceeds of the fresh issuance will be used to purchase equipment, plants, and machinery, repay debt, and fund general company objectives.
Happy Forgings IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 27 Dec 2023 | Rs 250 | NA | Rs 3000 |
| 26 Dec 2023 | Rs 300 | NA | Rs 3500 |
| 25 Dec 2023 | Rs 400 | NA | Rs 5500 |
| 22 Dec 2023 | Rs 400 | NA | Rs 5500 |
| 21 Dec 2023 | Rs 420 | NA | Rs 5500 |
| 19 Dec 2023 | Rs 420 | NA | Rs 5500 |
| 18 Dec 2023 | Rs 450 | NA | Rs 5500 |
| 17 Dec 2023 | Rs 450 | NA | Rs 5500 |
| 14 Dec 2023 | Rs 450 | NA | Rs 5500 |
As Happy Forgings Ltd.’s eagerly anticipated initial public offering (IPO) journey unfolds, market enthusiasts are keenly watching for updates on the Happy Forgings IPO GMP. The GMP, an unofficial market for trading IPO shares before listing, provides insights into investor sentiment and demand dynamics.
However, as of now, Grey Market Premium for Happy Forgings’ IPO is available. Investors and observers are eagerly awaiting indications from the GMP to gauge the level of interest and potential listing gains for the IPO.
The GMP’s role in influencing investment decisions and predicting listing performance remains significant. It offers a glimpse into how the IPO might be received by the market once it goes live.
Happy Forgings IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 19th Dec | 0.01x | 3.68x | 3.17x | 2.38x |
| 2nd Day – 20th Dec | 0.44x | 16.94x | 7.87x | 7.69x |
| 3rd Day – 21st Dec | 0.52x | 25.44x | 9.49x | 10.34x |
| Shares Offered or Net Issue | 2,373,160 | 1,779,870 | 4,153,031 | 11,865,801 |
While the financial community waits for the Happy Forgings Ltd IPO, the subscription status remains unknown. While specifics concerning investor interest and subscription levels have yet to be revealed, excitement in the auto components business is building.
Investors interested in participating in the IPO are anxiously awaiting the publication of the subscription status, which normally gives insights into retail and institutional investor demand and response.
This data is critical in determining market sentiment and the attractiveness of the IPO offering. Investors are advised to stay tuned for updates on the Happy Forgings IPO Subscription status as they are released, as these details will shed light on the market’s reception of the IPO and the company’s prospects.
Happy Forgings IPO Allotment Status
Investors and enthusiasts eagerly await updates on the allotment status of the Happy Forgings Ltd IPO. As of now, there is no official news regarding the allotment outcome.
The company’s IPO journey, marked by substantial interest and anticipation, is poised to provide investors with an opportunity to become stakeholders in its growth story.
The allotment status typically reveals the number of shares allocated to each investor who participated in the IPO subscription. It plays a pivotal role in shaping investors’ portfolios and decisions. Investors are encouraged to exercise patience as the company and regulatory authorities work to finalize and announce the allotment status.
Happy Forgings’ IPO, characterized by its fresh issue of equity shares and offer for sale (OFS), represents a strategic move to raise capital for expansion and development initiatives.
While the Happy Forgings IPO Allotment status is awaited, investors are advised to stay tuned for official announcements, ensuring they receive accurate and timely information to guide their investment decisions effectively.
Happy Forgings IPO Live Performance
Investors are keenly watching the performance of Happy Forgings Ltd.’s IPO as the company progresses toward its listing. However, as of now, there is no available news or information regarding the Happy Forgings IPO live performance.
The market eagerly anticipates updates on the subscription numbers, demand, and overall market response once the IPO is officially launched.
Happy Forgings’ IPO, with its notable fundraising objectives and comprehensive offering, has garnered attention within the investment community. Once the IPO subscription period begins and trading commences, the market will gain insights into the investor sentiment and the company’s reception in the stock market.
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Latest Happy Forgings IPO News
While the IPO landscape is dynamic and subject to change, there have been no recent announcements regarding the IPO’s progress, including dates, pricing, or other pertinent details. Interested parties are advised to stay tuned to official sources and financial news outlets for any upcoming information that could shed light on the IPO’s trajectory.
In this period of anticipation, stakeholders are encouraged to exercise patience and await official news releases from Happy Forgings and relevant regulatory bodies.
The absence of Happy Forgings IPO news does not diminish the significance of the IPO, and as events unfold, timely updates will provide valuable insights into the company’s journey toward its public listing.
Happy Forgings – Company Review
Happy Forgings Limited, founded in 1979 and headquartered in Ludhiana, India, is a distinguished manufacturer specializing in forging products tailored for diverse industries, including automotive, transportation, railway, construction, mining, and oil and gas.
The company has carved a niche for itself with a portfolio of safety-critical components, ranging from steering knuckles and transmission gears to suspension assemblies and locomotive parts.
At the heart of Happy Forgings’ offerings is a comprehensive lineup of customized closed-die hot forgings crafted from both carbon and alloy steel. These products are meticulously designed and manufactured to meet the stringent requirements of modern industries.
The company places a strong emphasis on the entire production process, encompassing forging, heat treatment, surface cleaning, machining, and subcontracting activities. This holistic approach ensures that clients receive high-quality components ready for integration into their production units.
Happy Forgings Limited’s commitment to quality, precision, and safety has positioned it as a key player in the competitive landscape. The company’s expertise in delivering critical components essential for various industrial applications underscores its reliability and reputation as a trusted partner.
Operating under the classification of a public limited company, it is situated in Ludhiana, Punjab, India. The company’s authorized share capital stands at INR 30.00 crore, with a total paid-up capital of INR 17.90 crore.
Products or Services
Happy Forgings Limited offers an array of precision auto components, including Crank Shafts, Front Axle Beams, Steering Knuckles, CNC Turned Components, Differential Cases, and Railway Parts. These meticulously crafted products cater to industries seeking high-performance solutions.
With expertise in manufacturing and precision engineering, Happy Forgings stands as a reliable source of quality components that ensure safety and efficiency in various applications.
Promoters and Holding
Happy Forgings is championed by a group of committed promoters:
- Paritosh Kumar: Aged 68, Chairman and Managing Director, holds 10% equity.
- Ashish Garg: Aged 38, Managing Director, owns 14.47% equity.
- Megha Garg: Aged 38, Whole-time Director, possesses 2.70% equity.
Corporate promoter Ayush Capital & Financial Services holds 12.01%. Garg Family Trust holds 42.51%, focusing on wealth management and succession planning. Paritosh Kumar Garg (HUF) holds 6.27%, while Ashish Garg & Sons (HUF) owns 0.28%. This diversified team and holdings underline Happy Forgings’ commitment to growth and collaboration.
Is Happy Forgings Good for Investment?
Happy Forgings operates within the backdrop of India’s dynamic economic shifts. The Indian economy witnessed notable growth between Fiscal 2014 and 2018, characterized by a 7.4% average GDP growth attributed to reduced commodity prices and increased purchasing power.
However, the introduction of demonetization and the Goods and Services Tax (GST) caused GDP growth to decline in 2018.
Despite challenges, the Indian economy rebounded strongly, achieving an 8.7% growth in 2021. The manufacturing sector’s resilience is evident, projected to recover to approximately 16% of GDP by 2023. This resurgence is driven by factors like revived consumer demand and the recalibration of global supply chains.
Happy Forgings’ activities are in sync with crucial trends in major industries. The worldwide automotive sector forecasts expansion, with the commercial vehicle market expected to rise as a result of growing e-commerce demand and infrastructural development.
The firm is perfectly positioned to capitalize on this expansion through the manufacture of car components, particularly steering knuckles and crankshafts. While commercial vehicle adoption of electric vehicles is slow, Happy Forgings might explore researching developing options like as hydrogen-based engines.
Happy Forgings might gain from government measures supporting the agricultural sector in the tractor industry, where India plays a big role. The rise of contract farming and electrification trends present prospective growth opportunities for the organization.
Happy Forgings exhibits a proactive approach in line with these trends. By understanding and aligning its strategies with the evolving economic dynamics, the company is poised to capitalize on emerging opportunities.
Whether through embracing alternative power solutions, adapting to changing vehicle trends, or catering to increased infrastructure demands, Happy Forgings can contribute to sector growth and innovation. With a finger on the pulse of India’s economy, Happy Forgings is well-positioned to navigate the challenges and opportunities that lie ahead.
Happy Forgings Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Assets | 13,261.68 | 11,298.69 | 8,763.84 |
| Revenue | 12,022.71 | 8,661.05 | 5,908.13 |
| Expense | 9,222.47 | 6,740.58 | 4,737.52 |
| Profit After Tax | 2,087.01 | 1,422.89 | 864.48 |
Happy Forgings’ financial performance over the past three fiscal years, ending on March 31, 2023, March 31, 2022, and March 31, 2021, reflects a comprehensive overview of its economic strength and strategic endeavours.
The balance sheet highlights a remarkable expansion in its non-current assets, encompassing property, plant, equipment, capital work-in-progress, and intangible assets.
This growth underscores the company’s commitment to infrastructure development and innovation. Additionally, the balance sheet indicates an upward trajectory in current assets, with notable increases in trade receivables and financial assets, revealing successful efforts in optimizing its working capital management.
Examining the profit and loss statements for the same period underscores Happy Forgings’ steadfast revenue growth. The revenue from operations has shown significant positive momentum, a testament to the company’s ability to capitalize on market opportunities. Cost management and efficiency enhancements are evident in the reduction of the cost of raw materials and components consumed, leading to improved profitability.
Moreover, the company’s comprehensive income includes both reclassified and non-reclassified items. It demonstrates a commitment to sustainable financial health and prudent risk management. Overall, the financial performance of Happy Forgings underscores its strategic prowess and commitment to long-term growth in a dynamic business landscape.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Basic & Diluted | 23.32 | 15.90 | 9.66 |
Happy Forgings IPO Review
Happy Forgings Ltd., a key player in auto components manufacturing, has filed a draft red herring prospectus (DRHP) for its IPO, aiming to raise Rs 1,200-1,300 crore.
The IPO comprises a fresh issue of Rs 400.00 crore and an offer for sale of up to 80.55 lakh shares. It also considers a pre-IPO placement of shares worth Rs 100 crore. Lead book-running managers include JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors.
Investors anticipate the IPO’s details and timeline. Happy Forgings’ proven expertise in producing precision auto components for diverse sectors. Alongside its strategic approach, underpins its growth potential in a changing economic landscape.
Happy Forgings IPO Details
Here are a few more details you need to know before investing in Happy Forgings IPO –
Happy Forgings IPO Issue Object
Thus, Happy Forgings has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Purchase of equipment, plant and machinery;
- Prepayment of all or a portion of certain outstanding borrowings availed by our Company; and
- General corporate purposes.
Happy Forgings IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Fourth largest engineering-led manufacturer of complex and safety-critical, heavy forged and high precision machined components in India;
- Integrated manufacturing operations coupled with in-house product and process design capabilities
- Diversified business model, well placed to take advantage of potential alternative engine technologies;
- Long-standing relationships with customers across industries;
- Track record of consistently building capabilities and infrastructure, with a focus on capital efficiency;
- Experienced Promoters and senior management team; and
- Track record of healthy financial performance
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-23 | 23.32 | 21.12% | 110.43 |
| 31-Mar-22 | 15.90 | 18.07% | – |
| Mar-21 | 9.66 | 13.40% | – |
Happy Forgings IPO Lead Managers
Here is the list of Lead managers –
- JM Financial Limited
- Axis Capital Limited
- Equirus Capital Private Limited
- Motilal Oswal Investment Advisors Limited
Happy Forgings IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg
Vikhroli (West), Mumbai – 400 083 Maharashtra, India
Telephone: + 91 810 811 4949
E-mail: happyforgings.ipo@linkintime.co.in
Investor Grievance E-mail: happyforgings.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact person: Shanti Gopalkrishnan
SEBI Registration No: INR000004058
Happy Forgings IPO – Other Details
- Statutory Auditor – S.R. Batliboi & Co. LLP, Chartered Accountants
- Legal Counsel to the Company – Khaitan & Co
- Bankers to the Company – ICICI Bank Limited
Happy Forgings IPO Verdict by Stock Brokers
The upcoming Happy Forgings IPO presents a promising opportunity in the auto components manufacturing sector. With a strategy encompassing a fresh equity share issue and an offer for sale, the company aims to raise capital while accommodating existing stakeholders.
The company’s specialization in safety-critical components for various industries aligns with market demand. And its engagement with reputable financial institutions as lead managers reflects investor confidence.
Against the backdrop of India’s resurging manufacturing sector and recovering economy, Happy Forgings’ proactive approach positions it well for growth.
Although details like Grey Market Premium and subscription status await, the company’s strong financial performance and alignment with industry trends make the IPO appealing to investors seeking exposure to a dynamic sector.
While individual risk appetite and financial goals remain key. Happy Forgings’ profile suggests it could be a valuable addition to investment portfolios. It is subject to further insights from official announcements and expert analysis.
Happy Forgings IPO – Conclusion
The Happy Forgings IPO offers potential in the car component manufacturing scene. The IPO capitalizes on market trends. While appeasing current stakeholders through a dual approach of new stock issuance and an offer for sale.
The company’s outstanding track record, alignment with industry trends, and sensible tactics put it in a good light. While critical specifics such as Grey Market Premium and subscription status are still pending, the IPO represents an appealing prospect for investors seeking exposure to a resurgent manufacturing sector and dynamic economy.
Personal risk tolerance and goals, like with any investment, remain critical. However, the company’s proactive strategy and financial performance suggest. That the Happy Forgings IPO might be a worthwhile option for savvy investors.
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Happy Forgings IPO Review FAQs
Check out the FAQs on Happy Forgings IPO –
What is the Issue Size of Happy Forgings IPO?
The Company is making an initial public offer of 7,159,920 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Happy Forgings IPO?
The price band for this particular IPO ranges between Rs 808 to Rs 850. As far as the face value of the share is concerned, it is Rs.2 per share.
What is the Happy Forgings IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on December 19, 2023, while the closing date is set at December 21, 2023.
What is the Happy Forgings IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on December 22, 2023, refund initiation is on December 26, 2023, credit of shares is on December 26, 2023, and share listing date is on December 27, 2023.
What is the Happy Forgings IPO Listing Date?
Shares of this company shall be listed in the exchanges on December 27, 2023. The date, when the listing would be done, is stagnant on December 27, 2023.
Who is the Registrar of Happy Forgings IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Happy Forgings IPO?
Here are the promoters of this 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). You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Happy Forgings IPO?
They have obtained the GMP of this IPO and it is Rs. 250. Further insights into the Kostak rate and subject to sauda or SS are also included in this report.
Is Happy Forgings IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Happy Forgings Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 2,087.01, 2022 is 1,422.89, and 2021 is 864.48.
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