Happy Forgings Ltd. IPO
Happy Forgings Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹850
Issue Price
Listing Price
₹1,001
Listing Price
Listing Gains
+₹151.25 (+17.79%)
Listing Gains
IPO Details
Bidding Dates
19 Dec - 21 Dec '23
Bidding Dates
Min. Investment
₹13,736
Min. Investment
Lot Size
17.00
Lot Size
Price Range
₹808 - ₹850
Price Range
Issue Size
959 Cr
Issue Size
Subscription Rate
- Retail Individual Investor15.09x
- Non-Institutional Investor62.17x
- Qualified Institutional Buyers220.48x
- Employees
About Company
Happy Forgings Limited, founded in July 1979, is an Indian firm that specialises in developing and manufacturing heavy forgings and high-precision machined components. Crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension items, and valve bodies are among the products that the company makes, creates, and tests for various industries and clients.
AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, and Mahindra & Mahindra Limited are among the few notable company's customers. Happy Forging Limited has three manufacturing plants in Ludhiana, Punjab, two in Kanganwal and one in Dugri. The company's operational revenue has increased by 43.02% as of FY 2023. Important dates related to Happy Forgings IPO mentioned below.
Important Dates - Happy Forgings IPO
| Application opens on | 19th December 2023 |
| Last date of application | 21st December 2023 |
| Date of Allotment | 22nd December 2023 |
| Refund begins from | 26th December 2023 |
| Credit of shares to Demat | 26th December 2023 |
| Listing date | 27th December 2023 |
Why should you invest in Happy Forgings Ltd. IPO?
Happy Forgings Limited is one of India's most prominent and largest engineering makers of difficult and precision machined components. Between the fiscal years ending March 31, 2023 and March 31, 2022, the company's revenue increased by 38.81% and its profit after tax (PAT) increased by 46.67%.
Happy Forgings IPO Grey Market Premium
| Date | GMP |
|---|---|
| 18th December | Rs.410 |
| 17th December | Rs.410 |
Happy Forgings IPO Noteworthy Highlights
- The fresh issue portion of the IPO of Happy Forgings IPO comprises the issue of 47,05,882 shares (47.06 lakh shares approximately), which at the upper price band of ₹850 per share will translate into a fresh issue size of ₹400.00 crore.
- The offer for sale portion of the IPO of Happy Forgings Ltd comprises the sale of 71,59,920 shares (71.60 lakh shares approximately), which at the upper price band of ₹850 per share will translate into a fresh issue size of ₹608.59 crore.
Happy Forgings Ltd. IPO - SWOT Analysis
Strengths
Revenue growth for the company has been high over the last three years, with a CAGR of over 40%. What distinguishes Happy Forgings Ltd is that its net profits have more than doubled in the last two years, indicating significant traction in both its top and bottom lines. While the company holds a leadership position in the niche in which it competes, PAT margins have been consistently above 15%, ranking among the highest in the peer group.
Weaknesses
The company's major supply of steel comes from a small number of sources. Furthermore, Happy Forgings' supply agreements with vendors are not finalised. The cost and availability of steel determine the company's operations and profitability; any disruption in the steel supply or price volatility may have an effect on operations.
Opportunities
The business has a multifaceted business strategy, backward and forward integration in the forgings industry, and strong client ties. Due to its restricted CV clientele and leadership position in the heavy forgings industry, the company holds a niche position in the industry giving it an upper hand.
Threats
The crankshaft sale accounts for 45.29 percent of the company's total revenue, which is a major source of income for the company. It is challenging to convert heavy-duty trucks to electric vehicles (EVs) since they have different operational needs and need more power than passenger vehicles.
Financial Snapshot - Happy Forgings IPO
Check out the financial performance of Happy Forgings for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2021 | Rs 876.38 crore | Rs 584.96 crore | Rs 86.45 crore |
| March 2022 | Rs 1,129.87 crore | Rs 860.05 crore | Rs 142.29 crore |
| March 2023 | Rs 1326.17 crore | Rs 1196.53 crore | Rs 208.70 crore |
A competitive analysis
Happy Forgings has Bharat Forge Limited, Craftsman Automation Limited, Ramkrishna Forgings Limited and Sona BLW Precision Forgings Limited as its peers. Take a look at their performances:
Competitive Analysis - Happy Forgings IPO
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| Bharat Forge Limited Ltd | 54,797 | 33.08% |
| Craftsman Automation Limited | 10,935 | 51.9% |
| Ramkrishna Forgings Limited | 13,364 | 196.22% |
How to apply for Happy Forgings Ltd. IPO?
You can apply for the Happy Forgings Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Happy Forgings Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
