Happy Forgings IPO Date, Price, GMP, Lot Size Details, Review
This post was most recently updated on December 20th, 2023
Happy Forgings is a leading manufacturer of forged and machined components for various industries, such as automotive, farm equipment, oil and gas, and railways. The company is launching its IPO on December 19, 2023, to raise Rs 400 crore through a fresh issue of shares and an offer for sale by the promoters.
The Happy Forgings IPO price band is Rs 808-850 per share and the issue will close on December 21, 2023. The shares will be listed on BSE and NSE. In this article, we will look at the Happy Forgings IPO Dates, Price Band, GMP, Lot Size Details and provide our review.
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Page Contents
Happy Forgings IPO Overview
| IPO Dates | December 19, 2023 – December 21, 2023 |
| Issue Type | Book Built Issue IPO |
| Total Issue Size | ₹400.00 Crore (Fresh Issue) + 0.72 Crore shares (Offer for Sale) |
| Price Band | ₹808 to ₹850 per share |
| Lot Size | 17 Shares |
| Listing At | BSE, NSE |
| Tentative Listing Date | December 27, 2023 |
| Happy Forgings IPO GMP | ₹410 |
| Happy Forgings IPO Listing Price Prediction | ₹1260 |
Happy Forgings IPO Dates
| IPO Open Date | Tuesday, December 19, 2023 |
| IPO Close Date | Thursday, December 21, 2023 |
| Basis of Allotment | Friday, December 22, 2023 |
| Initiation of Refunds | Tuesday, December 26, 2023 |
| Credit of Shares to Demat | Tuesday, December 26, 2023 |
| Listing Date | Wednesday, December 27, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 21, 2023 |
Happy Forgings IPO Lot Size
| Investor Category | Application (Lots) | Shares (Minimum) | Amount (Minimum) |
|---|---|---|---|
| Retail (Min) | 1 | 17 | ₹14,450 |
| Retail (Max) | 13 | 221 | ₹187,850 |
| S-HNI (Min) | 14 | 238 | ₹202,300 |
| S-HNI (Max) | 69 | 1,173 | ₹997,050 |
| B-HNI (Min) | 70 | 1,190 | ₹1,011,500 |
Happy Forgings IPO GMP
| GMP Date | GMP | Happy Forgings IPO Estimated Listing Price |
|---|---|---|
| 18 Dec 2023 | ₹410 Todays Movement – GMP No Change | ₹1260 (48.24%) |
| 17 Dec 2023 | ₹410 Todays Movement – GMP Down | ₹1260 (48.24%) |
| 16 Dec 2023 | ₹420 Todays Movement – GMP Down | ₹1270 (49.41%) |
| 15 Dec 2023 | ₹460 Todays Movement – GMP No Change | ₹1310 (54.12%) |
| 14 Dec 2023 | ₹460 Todays Movement – GMP Up | ₹1310 (54.12%) |
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Happy Forgings Company Profile
Happy Forgings Limited, established in July 1979, specializes in designing, manufacturing, and testing various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies. The company caters to a diverse range of industries and customers, including prominent names like Ashok Leyland Limited, JCB India Limited, Mahindra & Mahindra Limited, and many others.
Global Presence
Happy Forgings has served customers in various regions, including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America. This global footprint underscores the company’s extensive market reach and reputation.
Manufacturing Facilities
The company operates three manufacturing facilities located in Ludhiana, Punjab. These facilities are equipped to handle the complex demands of heavy forgings and precision machined components.
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Happy Forgings Financial Highlights
- Revenue Growth: Happy Forgings Limited’s revenue increased by 38.81% between the financial years ending March 31, 2022, and March 31, 2023.
- Profit After Tax (PAT): PAT rose by 46.67% in the same period.
- Net Worth: As of September 30, 2023, the net worth stood at ₹1,103.33 Crores.
- Total Borrowing: ₹258.97 Crores as of September 30, 2023.
Happy Forgings Key Performance Indicators
- P/E Ratio: 36.45
- ROE: 21.12%
- ROCE: 24.24%
- EPS: ₹23.32
Happy Forgings IPO Objectives
The net proceeds from the IPO will be utilized for:
- Purchase of equipment, plant, and machinery.
- Prepayment of all or a portion of certain outstanding borrowings.
- General corporate purposes.
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Pros and Cons of Happy Forgings IPO
Pros:
- The company has a diversified product portfolio and customer base, catering to both domestic and global markets.
- The company has a strong track record of financial performance, with consistent revenue growth, high margins, and healthy return ratios.
- The company has invested in expanding its capacity and enhancing its technology, which will enable it to meet the growing demand and improve its operational efficiency.
- The company has a competitive edge over its peers in terms of quality, delivery, and pricing, owing to its engineering capabilities, process design, and testing facilities.
- The company has a long-term relationship with its key customers, which include leading OEMs in the commercial vehicle, farm equipment, and industrial sectors.
- The company has an experienced and qualified management team, with a clear vision and strategy for future growth.
Cons:
- The company’s business is dependent on the performance of the end-user industries, which are cyclical and sensitive to macroeconomic factors.
- The company faces intense competition from other domestic and international players in the forging and machining industry, which may affect its market share and profitability.
- The company is exposed to fluctuations in raw material prices, especially steel, which is a major input cost for its products.
- The company is subject to various environmental, health, and safety regulations, which may increase its compliance costs and liabilities.
- The company may face operational risks such as disruption in supply chain, quality issues, labor unrest, or natural calamities, which may affect its production and delivery.
Happy Forgings IPO Analysis and Review
Happy Forgings Limited has established itself as a leader in the manufacturing of critical, complex, and precision machined components. The company’s steady growth in top and bottom lines, along with its global presence, positions it well in the industry.
However, investors should consider the competitive landscape, market risks, and the company’s future growth strategies before investing.
Final Thoughts on Happy Forgings IPO
The Happy Forgings IPO presents an opportunity for investors to participate in the growth story of a leading manufacturer in the heavy forgings and precision machined components sector. With its solid track record and strategic focus on key segments, the company is poised for future growth. However, as with any investment, it is crucial to conduct thorough research and consider individual risk appetites before participating in the IPO.
