Happy Forgings Limited Makes Strong Market Debut with 17% Premium on Listing

27 Dec 2023 , 09:49 AM

Happy Forgings Limited, a prominent heavy forgings manufacturer, witnessed a robust market debut on December 27, with its shares listing at a 17% premium. On the NSE, the shares started trading at Rs 1000, reflecting a premium of 17.65% over the issue price of Rs 850 per share, while on the BSE, the listing price was Rs 1001.25, marking a significant 17.79% increase.

The company’s public offering generated substantial investor interest, achieving an impressive subscription rate of 82 times on the final day of bidding on December 21. Noteworthy participation came from retail investors, subscribing 15.09 times, and high net-worth individuals, who oversubscribed their allotted quota by 62.17 times. Qualified Institutional Buyers (QIBs) exhibited strong enthusiasm, subscribing a remarkable 220.48 times their reserved portion.

Happy Forgings has outlined strategic plans for the utilization of the net proceeds from the fresh issue. A significant portion, amounting to Rs 171.1 crore, will be allocated for the acquisition of equipment, plant, and machinery. Additionally, Rs 152.76 crore will be directed towards debt repayment, with the remaining funds earmarked for general corporate purposes.

The Rs 1,009-crore IPO comprises a fresh issue of Rs 400 crore shares and an offer-for-sale of 0.72 crore shares.