Auto Component Manufacturer Happy Forgings Files IPO Papers with SEBI

15 Aug 2023 , 12:45 PM

Happy Forgings Ltd, a Punjab-based manufacturer of auto components, has submitted draft papers to the Securities and Exchange Board of India (SEBI) in order to raise funds through a public issue.

The IPO will encompass a fresh issue of Rs 500 crore along with an offer-for-sale involving up to 8.05 million shares from existing shareholders and promoters. The offer-for-sale includes up to 5.37 million shares by Paritosh Kumar Garg (HUF) and up to 2.68 million shares by India Business Excellence Fund III.

The generated funds, amounting to Rs 227.86 crore, will be allocated towards acquiring equipment, plant, and machinery. An additional Rs 190 crore will be utilized to repay existing debt. As of July 15, the company holds total outstanding borrowings of Rs 203.23 crore.

The company specializes in engineering, process design, testing, production, and distribution of a diverse range of components, contributing positively to profit margins and value enhancement. Its primary focus is to cater to both domestic and international original equipment manufacturers (OEMs) engaged in the production of commercial vehicles within the automotive sector.

The company manufactures a wide range of sturdy forged and machined products. This includes items like crankshafts, front axle beams, steering knuckles, differential cases, transmission components, pinion shafts, suspension components, and valve bodies. These offerings find application across multiple industries and cater to a varied clientele.

Leading the issue as lead managers are JM Financial, Axis Capital, Equirus Capital Pvt Ltd, and Motilal Oswal Investment Advisors Ltd.