Happy Forgings IPO Anchor Book Shines, Rs 302 Crore Raised

19 Dec 2023 , 12:11 PM

Precision components manufacturer, Happy Forgings, successfully raised Rs 302.6 crore from institutional investors through its anchor book, launched on December 18. 

The company allocated 35,59,740 equity shares to anchor investors at a price of Rs 850 per share. Notable participants include Morgan Stanley, Ashoka Whiteoak ICAV, Optimix Wholesale Global Emerging Markets Share Trust, Janchor Partners, and East Bridge Capital Master Fund. Several mutual funds and insurance companies, such as HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance, and Aditya Birla Sun Life Insurance, also invested in the anchor book.

Happy Forgings is set to open its Rs 1,008.6-crore initial public offering (IPO) for subscription on December 19, with a price band of Rs 808-850 per share. 

The IPO consists of a fresh issue of Rs 400 crore worth of shares and an offer-for-sale (OFS) of 71.6 lakh equity shares by existing shareholders. Promoters Paritosh Kumar Garg (HUF) and India Business Excellence Fund – III are the selling shareholders in the OFS.

The company, which serves domestic and global original equipment manufacturers in various sectors, including automotive, off-highway vehicles, oil and gas, power generation, railways, and wind turbine industries, plans to use the net fresh issue proceeds for equipment, plant and machinery purchases (Rs 171.1 crore), debt repayment (Rs 152.76 crore), and general corporate purposes. 

JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running lead managers for the issue.