Happy Forgings IPO opens today; check price band, GMP, among 10 key things to know before investing
- The total issue size of the Happy Forgings IPO is ₹1,008.59 crore which comprises a fresh issue of equity shares worth ₹400 crore and an offer for sale (OFS) of 71.59 lakh shares.
Happy Forgings IPO: Happy Forgings Ltd has launched its initial public offering (IPO) today, on December 19. The company is a manufacturer of heavy forgings and high-precision machined components.
Happy Forgings IPO is a book built issue and will remain open for subscription till December 21.
Here are 10 key things to know about Happy Forgings IPO:
1) Happy Forgings IPO Dates: Happy Forgings IPO opens for subscription on Tuesday, December 19, and will close on Thursday, December 21. The IPO allotment is expected to be finalized on December 22.
2) Happy Forgings IPO Details: The total issue size of the Happy Forgings IPO is ₹1,008.59 crore which comprises a fresh issue of equity shares worth ₹400 crore and an offer for sale (OFS) of 71.59 lakh shares.
3) Happy Forgings IPO Price Band: Happy Forgings IPO price band is set at ₹808 to ₹850 per share.
4) Happy Forgings IPO Lot Size: The IPO lot size is 17 shares and the minimum investment amount required by retail investors is ₹14,450.
5) Happy Forgings IPO Reservations: The company has reserved 50% of the shares in the IPO for Qualified Institutional Buyers (QIB), 35% of offer for Retail Investors and remaining 15% for Non-Institutional Investors (NII).
6) Happy Forgings IPO Listing: Happy Forgings IPO will list on both the stock exchanges - BSE and NSE, with a tentative listing date fixed on December 27.
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7) Happy Forgings IPO Lead Managers, Registrar: JM Financial, Axis Capital, Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers of the Happy Forgings IPO, while Link Intime India Private Ltd is the IPO registrar.
8) Happy Forgings IPO Objectives: The company proposes to utilise the net issue proceeds towards the purchase of equipment, plant and machinery; prepayment of all or a portion of certain outstanding borrowings and for general corporate purposes.
9) Happy Forgings IPO Anchor Allotment: Happy Forgings Ltd on Monday garnered ₹303 crore from anchor investors, ahead of its IPO opening today. The company has allocated 35,59,740 equity shares at ₹850 per share to the 25 anchor investors, as per stock exchange filing.
10) Happy Forgings IPO GMP Today: Happy Forgings IPO GMP today, or grey market premium today, is ₹430 per share, as per market observers. This indicates that Happy Forgings shares are trading at a premium of 50.59% to the issue price at ₹1,280 apiece in the grey market.
Happy Forgings IPO Review:
Happy Forgings’ diversified product portfolio, coupled with its focus on margin-accretive and value-additive products, has contributed to its transition from a forging-led business to a leading player in the machined components manufacturing industry.
“At the upper price band, the company is valuing at P/E of 38.4x with a market cap of ₹80,074 million post issue of equity shares and return on net worth of 21.12%. On the valuation front, we believe that the company is fairly priced,” said Anand Rathi Share and Stock Brokers.
The brokerage firm recommended a “Subscribe – Long Term” rating to the Happy Forgings IPO.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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