Happy Forgings IPO Oversubscribed 12.99 Times on Day 3

21 Dec 2023 , 11:57 AM

On December 21, the third day of bidding, Happy Forgings’ Rs 1,009-crore initial public offering (IPO) witnessed robust demand, with the subscription reaching 12.99 times. Investors bid for 10.87 crore shares against the available 83.65 lakh shares. Click here to subscribe the IPO

• Retail Investors: The retail portion was oversubscribed 10.37 times, indicating strong interest from individual investors.
• High Net-Worth Individuals (HNIs): High net-worth individuals showed significant enthusiasm, subscribing 30.48 times the allotted quota of shares.
• Qualified Institutional Buyers (QIBs): QIBs subscribed to 4.09 times of the shares reserved for them.

On day 2, the issue has been subscribed 7 times.

The IPO comprises a fresh issue of 47 lakh shares worth Rs 400 crore and an offer-for-sale (OFS) of 71.59 lakh shares worth Rs 608.59 crore. The price band for the issue was set at Rs 808-850 per share.

Happy Forgings plans to utilize the net proceeds from the fresh issue for acquiring equipment, plant, and machinery (Rs 171.1 crore). Additionally, a portion of funds (Rs 152.76 crore) will be allocated for debt repayment, and the remaining funds will be used for general corporate purposes.

In FY23, the company demonstrated strong financial performance, with a 46.7% YoY growth in net profit at Rs 208.7 crore. The earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 47.7% to Rs 341 crore, with a margin expansion of 170 basis points to 28.5%. The total revenue at the topline surged more than 39% to Rs 1,197 crore.

JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running managers for the IPO, and Link Intime India Private Ltd is the registrar.