Happy Forgings IPO to open on December 19; check price band and other details

The initial public offering (IPO) of Happy Forgings will be sold in the range of Rs 808-850 apiece with a lot size of 17 equity shares. The company will be selling its shares for three-day, during the period between December 19, Tuesday and December 21, Thursday. Anchor book for the issue opens on Monday, December 18.

Incorporated in July 1979, Happy Forgings is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. Happy Forging  has three manufacturing facilities, two in Kanganwal and one in Dugri, all located in Ludhiana, Punjab.

The company is looking to raise a total of Rs 1,008.59 crore via its IPO, which includes a fresh sale of shares worth Rs 400 crore, while its promoter Paritosh Kumar Garg (HUF) and investors India Business Excellence Fund will cumulatively offload 71,59,920 equity shares via OFS route.

The net proceeds from the issue shall be utilized towards  purchase of equipment, plant and machinery; prepayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes.

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Happy Forgings manufacturers, designs and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products and valve bodies for different industries and customers.

The company has served customers in various regions including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom and the United States of America. Its customer base includes AAM India, Ashok Leyland, Bonfiglioli Transmissions, Dana India, IBCC Industries (India, International Tractors, JCB India, Mahindra & Mahindra, SML ISUZU, Swaraj Engines and others.

The company has reserved half of the issue or 50 per cent for the qualified institutional bidders (QIBs), while retail investors will get 35 per cent of reservation in the net offer. Remaining 15 per cent of the shares shall be allocated towards non-institutional investors.

JM Financial, Axis Capital, Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers of the Happy Forgings IPO, while Link Intime India Private Ltd is the registrar for the issue. Shares of the company will be listed on both BSE and NSE on December 27, Wednesday.

 

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