Happy Forgings shares list at 18% premium on Dalal Street over issue price

Shares of Happy Forgings Ltd made a strong debut at Dalal Street on Wednesday as the forgings and high-precision machined components manufacturer debuted at Rs 1,001.25, a premium of 18 per cent, at the National Stock Exchange (NSE), against the issue price of Rs 850 apiece. The scrip was listed at a premium of 18 per cent at Rs 1,000 on the BSE.

The listing of Happy Forgings has been less than expected as Happy Forgings was commanding a premium of Rs 240-250 per share in the grey market, ahead of its listing, suggesting a listing pop of 28-30 per cent to the investors. However, the premium in the unofficial market was around Rs 450 before the bidding process kicked off.

Happy Forgings sold its IPO in the price band of Rs 808-850 per share with a lot size of 17 shares, which was open for bidding between December 19 to December 21. The company aimed to raise about 1,008.59 crore from its primary offering, which included a fresh shares sale of Rs 400 crore and an offer-for-sale (OFS) of up to 47,05,882 equity shares.

The issue was overall subscribed a stellar 82.04times as the portion for qualified institutional bidders (QIBs) was booked a whopping 220.48 times, while the non-institutional investors' category was subscribed 62.17 times. The quota reserved for retail investors was subscribed 15.09 times during the bidding process.

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.

JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors were the book running lead managers for the IPO, with Link Intime India serving as the registrar for the issue.

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