Happy Forgings initiated its Initial Public Offering (IPO) on Tuesday, December 19, to raise ₹1,008.59 crore from the market. Priced between ₹808 and ₹850 per share, this IPO is set to close on December 21. The final allotment is expected to be determined by December 22.
The IPO comprises a total issue size of ₹1,008.59 crore, including a fresh equity shares issue of ₹400 crore and an Offer for Sale (OFS) of 71.59 lakh shares.
IPO details
From the net fresh issue proceeds, Happy Forgings will use ₹171.1 crore for the purchase of equipment, plant and machinery and ₹152.76 crore for repaying debts. The balance funds will be used for general corporate purposes.
Investors can bid for a minimum of 17 equity shares in one lot, with reservations allocated for different investor categories — 50% for QIBs, 35% for retail investors, and 15% for non-institutional investors.
JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the merchant bankers to the issue, while Link Intime India Private Ltd is the registrar. The equity shares of the company will be listed on both the BSE and the NSE on December 27.
What do brokerages say?
Happy Forgings has garnered positive attention from financial analysts.
Anand Rathi Research highlights the company's diversified product portfolio and its shift from forging to becoming a key player in machined components manufacturing, giving it a 'subscribe for long term' rating.
Similarly, Arihant Capital Markets emphasises Happy Forgings' dominant position in crankshaft manufacturing and its strategic initiatives for business expansion. They also suggest a 'subscribe' rating, citing growth potential and strategic acquisitions.
InCred Equities, while acknowledging the potential risks in EV penetration, recommends subscribing to the IPO. It cites the growing crankshaft market and Happy Forgings' strong financial performance.
| Brokerage | Rating |
|---|---|
| Anand Rathi Research | Subscribe (long-term) |
| Arihant Capital Markets | Subscribe |
| InCred Equities | Subscribe |
So, should one invest?
Despite concerns about EV penetration affecting the industry, experts seem bullish on Happy Forgings.
Watch | Ashish Garg, MD of Happy Forgings delve into the specifics of the IPO in a discussion on CNBC-TV18.
As with any investment, potential investors are encouraged to conduct thorough research and consider expert recommendations before making investment decisions, analysts say.
(Edited by : Amrita)
First Published: Dec 19, 2023 9:24 AM IST
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