Happy Forgings IPO: Price band set at ₹808-850 per share; GMP, issue details, more
Happy Forgings IPO price band : The Happy Forgings IPO price band has been fixed in the range of ₹808 to ₹850 per equity share of the face value of ₹2. The Happy Forgings IPO date of subscription is scheduled for Tuesday, December 19, and will close on Thursday, December 21. The allocation to anchor investors for the Happy Forgings IPO is scheduled to take place on Monday, December 18.
The floor price is 404 times the face value of the equity shares, and the cap price is 425 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for the financial year 2023 at the floor price is 34.65 times and at the cap price is 36.45 times. The Happy Forgings IPO lot size is 17 equity shares and in multiples of 17 equity shares thereafter.
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Happy Forgings IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Tentatively, Happy Forgings IPO basis of allotment of shares will be finalised on Friday, December 22, and the company will initiate refunds on Tuesday, December 26, while the shares will be credited to the demat account of allottees on the same day following refund. Happy Forgings share price is likely to be listed on BSE and NSE on Wednesday, December 27. Given that T+3 listing is mandatory as of December 1, 2023, Happy Forgings IPO will list on primary markets this month under this norm.
Also Read: Happy Forgings IPO: From issue date to price band, here’s all you need to know
Happy Forgings IPO details
Happy Forgings IPO comprises a fresh issue of shares of up to ₹400 crore and an offer for sale (OFS) of up to 7,159,920 equity shares with face value of ₹2 each by a promoter and others selling shareholders, as per red herring prospectus (RHP). The promoter selling shareholders are Paritosh Kumar Garg(HUF) (up to 4,922,445 equity shares), and investor India Business Excellence Fund –III (up to 2,237,475 equity shares).
The company plans to use the net proceeds from the new issue to finance the following goals: buying machinery, plant, and equipment; paying off all or a portion of some outstanding loans that the company has taken out; and general corporate purposes.
“In addition, our Company expects to receive the benefits of listing of Equity Shares on the Stock Exchanges including enhancing our visibility and our brand image among our existing and potential customers and creating a public market for our Equity Shares in India,” the company said in its RHP.
The company’s listed peers are Bharat Forge Limited (with a P/E of 102.63), Craftsman Automation Limited (with a P/E of 43.92), Ramkrishna Forgings Limited (with a P/E of 49.36), and Sona BLW Precision Forgings Limited (with a P/E of 85.56).
In the fiscal year that ended on March 31, 2022, Happy Forgings Limited’s revenue climbed by 38.81%, while its profit after tax (PAT) increased by 46.67%, as per reports.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 14 Dec 2023, 08:08 AM IST
