Happy Forgings lists at 18% premium; makes strong debut on Dalal Street – Times of India

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Happy Forgings IPO listing: Happy Forgings had a great start in the stock market, with its shares debuting at a high 18% premium over the initial public offering (IPO) price. On the Bombay Stock Exchange (BSE), the stock started at Rs 1001.2, a significant increase from the Rs 850 issue price. Simultaneously, on the National Stock Exchange (NSE), it opened 17.6% higher at Rs 1000.
According to ET, even before being listed on the exchanges, the company’s shares were in demand in the unlisted grey market, commanding a premium of Rs 282.The IPO received substantial interest, being oversubscribed an impressive 82 times.
Institutional investors were important in the high subscription of the IPO, with the qualified institutional buyers (QIB) portion oversubscribed by 220 times. Retail investors subscribed 15 times, and non-institutional investors (NIIs) expressed significant interest with a subscription rate of 62 times.About Happy Forgings
Happy Forgings is a company that focuses on engineering and specializes in making essential, heavy forged, and precisely machined components. They serve both local and global original equipment manufacturers, providing components for commercial vehicles in the automotive sector. In addition to automotive, the company’s clients in non-automotive sectors include manufacturers of farm equipment, off-highway vehicles, and industrial equipment used in industries like oil and gas, power generation, railways, and wind turbines.
The company offers a wide variety of products, including crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, planetary carriers, suspension brackets, and valve bodies. These products cater to various industries.
The funds raised from the IPO will be used for several purposes, such as acquiring equipment, plant and machinery, repaying debts, and covering general corporate expenses.
In the first half of 2023, Happy Forgings recorded revenues of Rs 600 crore and a profit of Rs 116 crore. For the entire fiscal year 2023, the company achieved notable growth, with a 39% increase in revenues to Rs 1196 crore and a 47% rise in profit to Rs 209 crore.
From fiscal year 2021 to 2023, Happy Forgings demonstrated impressive compound annual growth rates (CAGRs) of 43% in revenue, 47% in EBITDA, and 55% in profit after tax (PAT). Moreover, there was an improvement in Return on Capital Employed (RoCE), rising from 14% in FY21 to 22% in FY23.
JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital played important roles as the book-running lead managers for the IPO, contributing significantly to the successful listing of Happy Forgings.


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