Happy Forgings IPO Subscribed 4.12 Times on Day 2 So Far

20 Dec 2023 , 12:16 PM

As of noon on December 20, the second day of bidding, Happy Forgings’ Rs 1,009-crore initial public offering (IPO) witnessed robust demand, subscribing 4.12 times. The total bids amounted to 3.45 crore shares against the issue size of 83.65 lakh. Click here to subscribe the IPO.

Retail investors exhibited strong interest, subscribing 4.89 times, while high net-worth individuals participated at 7.55 times their allotted quota of shares. In contrast, qualified institutional buyers subscribed to only 3% of the shares set aside for them.

The IPO consists of a fresh issue of 47 lakh shares worth Rs 400 crore and an offer for sale of 71.59 lakh shares valued at Rs 608.59 crore. The price band for the issue was set at Rs 808-850 per share.

Happy Forgings intends to utilize the net proceeds from the fresh issue primarily for the purchase of equipment, plant, and machinery (Rs 171.1 crore). A portion of the funds (Rs 152.76 crore) will be allocated for debt repayment, while the remaining amount will be utilized for general corporate purposes.

The book-running managers for the issue are JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors. The registrar to the issue is Link Intime India Private Ltd.

Happy Forgings specializes in the production, design, and testing of a diverse range of products, including crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies.