Happy Forgings Gears Up For Debut, To Launch Rs 1,008 Crore IPO, Fixes Price Band

Happy Forgings, a leading precision machined products manufacturer, is set to make a debut in the financial market as it prepares for its maiden public issue to raise Rs 1,008.59 crore. The company, based in Punjab, has fixed the price band for its initial public offering (IPO) at Rs 808-850 per share.

The three-day subscription period for the IPO is scheduled to kick off on December 19 and end on December 21. Institutional investors have the opportunity to participate in the anchor book of the issue for a day on December 18, setting the stage for a dynamic and potentially lucrative investment opportunity.

Happy Forgings' IPO comprises a combination of fresh shares amounting to Rs 400 crore and an offer-for-sale (OFS) of 71.6 lakh equity shares worth Rs 608.59 crore at the upper price band. The selling shareholders in the OFS include Promoter Paritosh Kumar Garg (HUF) and investor India Business Excellence Fund - III. As of now, the promoter holds 88.24% of the company's shares, with the remaining stake owned by investor India Business Excellence Fund - III.

Proceeds from the fresh issue will be strategically allocated, with Rs 171.1 crore designated for the acquisition of equipment, plant, and machinery. Additionally, Rs 152.76 crore will be utilized for debt repayment, and the remaining funds will be earmarked for general corporate purposes, highlighting the company's commitment to sustained growth and financial stability.

Retail investors can enter the market with a minimum lot size of 17 equity shares, and thereafter in multiples of 17 shares. The investment range for retail investors varies from a minimum of Rs 14,450 for 17 shares to a maximum of Rs 1,87,850 for 221 shares, offering flexibility and inclusivity.

Happy Forgings, specializing in heavy forged and machined products such as crankshafts, front axle beams, steering knuckles, and transmission parts across various industries, derives approximately 44% of its revenue from the automotive segment. The remaining 56% is contributed by non-automotive sectors, showcasing the company's diverse business model.

The IPO is orchestrated by a team of seasoned merchant bankers, including JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors.