Happy Forgings IPO Day 3: Issue subscribed by over 9 times so far; check GMP, subscription status, other key details

Happy Forgings IPO: The maiden public offer of Happy Forgings Ltd has been witnessing strong demand from investors across the board. The bidding for Happy Forgings IPO, which opened  December 19, will end today, December 21.

Happy Forgings Ltd is a high-precision machined components manufacturing company. It is planning to raise ₹1,008.59 crore from the initial public offering (IPO).

Also Read: Happy Forgings IPO Day 1: Issue subscribed 2.31 times; retail portion booked 3x

Let us check Happy Forgings IPO GMP today, subscription status and other key details:

Happy Forgings IPO Subscription Status

Happy Forgings IPO was subscribed 9.11 times on December 21, the third and the last day of the bidding process. The public issue received bids for 7.61crore equity shares as against 83.65 lakh shares on the offer, as per data available on NSE till 10:35 am.

The IPO has been subscribed 8.61 times in the retail category and 21.22 times in the Non-Institutional Investors’ (NII) category so far. The Qualified Institutional Buyers' (QIBs) portion was booked 49%.

Happy Forgings IPO GMP Today

Happy Forgings IPO GMP today, or grey market premium today, is ₹435 per share, as per market oBSErvers. This indicates that Happy Forgings shares are trading higher by ₹435 apiece than their IPO price of ₹850, in the grey market.

Considering the IPO price and the GMP today, Happy Forgings share listing is estimated to be at a premium of 51.18% to the issue price at ₹1,285 per share.

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Happy Forgings IPO Details

Happy Forgings IPO commenced on December 19 and the bidding will conclude on December 21. The IPO size 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 price band is ₹808 to ₹850 per share. The IPO lot size is 17 shares and the minimum investment amount required by retail investors is ₹14,450.

The IPO allotment is expected to be finalised on December 22 and the shares will list on both the stock exchanges - BSE and NSE, with a tentative listing date fixed on December 27.

Also Read: Happy Forgings IPO: What GMP, subscription status signal as bidding ends today. Should you apply?

Happy Forgings raised ₹303 crore from anchor investors ahead of its IPO opening. It has allocated 35,59,740 equity shares at ₹850 per share to the 25 anchor investors, as per stock exchange filing.

The book running lead managers of the Happy Forgings IPO are JM Financial, Axis Capital, Equirus Capital and Motilal Oswal Investment Advisors, while the IPO registrar is Link Intime India Private Ltd.

Happy Forgings Ltd 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.

Happy Forgings IPO Review

Happy Forgings has differentiated itself by focusing on developing heavier, high precision, critical and value added products; for multiple end-use industries, which typically have extremely closed tolerances. This has translated to the company commanding substantially higher margins and return ratios compared to peers, brokerage firm Nirmal Bang noted.

“The company’s valuation at 38.4x FY23 P/E appears attractive compared to peers and thus we recommend to Subscribe to the IPO,” said the brokerage house.

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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.