Precision Machined Products Manufacturer, Happy Forgings, Eyes Rs 1,008.59 Crore from IPO

14 Dec 2023 , 09:49 AM

Happy Forgings, a leading precision machined products manufacturer, is set to raise Rs 1,008.59 crore from its inaugural public issue next week, with the price band fixed at Rs 808-850 per share.

Key IPO Details:

• Issue Dates: December 19 to December 21, 2023.
• Price Band: Rs 808-850 per share.
• Anchor Book Opening: December 18, 2023.
• Basis of Allotment: December 22, 2023.
• Initiation of Refunds: December 26, 2023.
• Credit of Shares to Demat: December 26, 2023.
• Listing Date: December 27, 2023.

Offer Structure:

• Fresh shares worth Rs 400 crore.
• Offer-for-Sale (OFS) of 71.6 lakh equity shares worth Rs 608.59 crore (at the upper price band) by existing shareholders.

Selling Shareholders:

• Promoter Paritosh Kumar Garg (HUF) and investor India Business Excellence Fund – III.

Utilization of Funds:

• Rs 171.1 crore for the purchase of equipment, plant, and machinery.
• Rs 152.76 crore for debt repayment.
• Remaining funds for general corporate purposes.

Investment Parameters:

• Minimum Lot Size: 17 equity shares.
• Retail Investors: Minimum investment of Rs 14,450 for 17 shares.
• Maximum Retail Investment: Rs 1,87,850 for 221 shares.

Business Overview:

• Happy Forgings specializes in heavy forged and machined products, catering to industries such as automotive and non-automotive.
• Automotive segment contributes nearly 44% of the business, while the remaining 56% comes from non-automotive sectors.

Merchant Bankers: JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the appointed merchant bankers for the IPO.

Happy Forgings aims to leverage the IPO proceeds to enhance its capabilities and reduce debt, contributing to the company’s growth and overall financial health.