Happy Steel share price gained as much as 5.30% on NSE in Thursday's trading session after making subdued start in the Indian stock market. The SME stock surged 5% to ₹69.50 from the issue price of ₹66. The SME stock touched an intraday high of ₹71.40.
Happy Steel share price made its stock market debut at 3% premium over the IPO price. The stock listed at ₹68 per share on Thursday.
The listing of Happy Steel IPO came below market expectations. The GMP of Happy Steel IPO was ₹10, signalling as estimated listing price of ₹76.
Happy Steels IPO details
The ₹25 crore IPO, which was open for subscription from July 9 to July 13, received a robust response from investors, with the issue being subscribed nearly 78 times. The IPO comprised a fresh issue of 37.88 lakh equity shares and was priced in the range of ₹62 to ₹66 per share.
The company intends to use the IPO proceeds to enhance its manufacturing capacity, lower its debt burden, and strengthen its balance sheet. Of the total proceeds, ₹13.16 crore has been allocated towards capital expenditure for the purchase of additional plant and machinery at its existing manufacturing facility, while ₹4.98 crore will be utilised to repay or prepay outstanding bank term loans.
Share India Capital Services Pvt. Ltd. acted as the book-running lead manager to the issue, while Bigshare Services Pvt. Ltd. served as the registrar.
Founded in 1996, Happy Steels Ltd. is an integrated manufacturer of safety-critical forged and precision-machined transmission and driveline components. Its products cater to a wide range of industries, including on-highway and off-highway vehicles, electric vehicles (EVs), and defence. The company operates a fully integrated manufacturing process, spanning raw material procurement, forging, heat treatment, precision machining, gear cutting, drilling, surface hardening, grinding, quality inspection and packaging.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
