Exploring the buzz around the Happy Forgings IPO, I’ve noticed a surge of interest from investors eager to understand this new opportunity. With a price band of $850.00 and an impressive estimated listing price of $1,305.00, there’s a lot to unpack about this high-potential offering.
The grey market’s whispers can’t be ignored, especially with the IPO’s last GMP (Grey Market Premium) hitting $455.00. It’s clear that the market anticipates a strong listing, but what does that mean for individual investors? Stay tuned as I delve into the details, dissecting the expectations and realities of the Happy Forgings IPO.
Happy Forgings IPO Details
The air’s buzzing with anticipation as the Happy Forgings IPO carves its niche in the stock market. Spanning from December 19 to December 21, 2023, this highly anticipated public offering has investors poised with pens over checks. The face value of each share is pegged at a minimal ₹2, indicative of an accessible entry point for a variety of investors.
With a comprehensive price band set between ₹808 to ₹850 per share, the company has laid out an inclusive yet competitive range. This detailed structure encapsulates a lot size of 17 shares, ensuring that retail investors can partake without the need for substantial initial capital.
Here’s a quick look at the total issue size:
|Number of Shares
|Aggregate Amount (₹ Cr)
|Total Issue Size
|Offer for Sale
This Book Built Issue IPO is aimed to list at both BSE and NSE, solidifying its presence across prominent national exchanges. It’s insightful to note a pre and post-issue shareholder equity comparison, with shareholding pre-issue at 89,499,000 and post-issue at 94,204,882. These figures underscore the expansion of the company’s equity base and emphasize the substantial increase in shareholder count post-IPO.
What’s perhaps even more compelling is the Grey Market Premium (GMP), which stood at $455.00 on December 20, 2023. The GMP is a speculative beacon of the aftermarket performance of Happy Forgings shares, with the company’s shares touted to launch at an estimated listing price significantly higher than their upper price band, showcasing an expected percentage gain/loss per share of 53.53%. The intricacies of such a market indicator are complex, yet they vibrate with the pulse of investor sentiment, which appears to be quite strong in this case.
Happy Forgings IPO Timeline
Timing is crucial when considering any IPO, and Happy Forgings’ is no exception. The IPO schedule is packed with key dates that potential investors should mark on their calendars. The process kicks off with the subscription opening on December 19, 2023, and stays available for bids until December 21, 2023.
Following the subscription period, there’s a swift progression of events leading up to the listing:
- Basis of allotment: This will take place on December 22, 2023, determining how many shares each applicant receives.
- Initiation of refunds: If there’s an over-subscription or you’re not allotted shares, expect refunds to start on December 26, 2023.
- Credit of shares to Demat accounts: Coinciding with the initiation of refunds, shares allotted to investors will be credited to Demat accounts on December 26, 2023.
The culmination of the IPO process is the listing date, set for December 27, 2023, when Happy Forgings’ shares will start trading on both BSE and NSE. This gives investors the first taste of how the stock is received in the open market.
One critical deadline for UPI users is the cut-off time for UPI mandate confirmation, which is set at 5 PM on December 21, 2023. Missing this deadline could mean missing out on the investment opportunity altogether.
Here’s a quick recap of the sequence and dates:
|IPO Open Date
|December 19, 2023
|IPO Close Date
|December 21, 2023
|Basis of Allotment
|December 22, 2023
|Initiation of Refunds
|December 26, 2023
|Credit of Shares to Demat
|December 26, 2023
|December 27, 2023
|The cut-off for UPI Mandate Confirm
|5 PM on December 21, 2023
To make the most of this IPO, staying informed and responsive within this timeline is essential. Remember, the early bird catches the worm, and in the world of IPOs, timing can be everything.
Happy Forgings IPO Lot Size
Understanding the lot size for the Happy Forgings IPO is crucial for investors aiming to partake in the offering. The lot size refers to the minimum number of shares an investor can bid for during the IPO application process. Once Happy Forgings lists on the mainboard, trading can occur in multiples of one share, but this flexibility doesn’t apply to the IPO subscription.
For the Happy Forgings IPO, the minimum lot size is 17 shares, with an upper band indicative value of ₹14,450. Investors are bound to invest in at least the minimum lot size or its multiples. Here’s a quick glimpse at what this means for different investor categories:
For retail investors, the table depicts that you can bid for a minimum of one lot and a maximum of thirteen lots. High-net-worth individuals (HNIs) are divided into two sub-categories: Small HNIs (S-HNIs) and Big HNIs (B-HNIs), each with their distinct lot ranges.
It’s noteworthy that for B-HNIs and Qualified Institutional Buyers (QIBs), there are no upper limits on the number of lots they can apply for. This lack of a cap enables them to make substantial investments, provided their financial standing supports such moves.
The window to join the ranks of potential Happy Forgings shareholders is limited, with bids opening on December 19, 2023, and closing just two days later on December 21, 2023. The tight timeframe underscores the importance of being prepared and decisive.
Happy Forgings IPO Promoter Holding
When it comes to initial public offerings, understanding promoter holdings is crucial for investors considering a stake in Happy Forgings. Promoter commitment often signals confidence in the future prospects of the company and typically stabilizes post-listing stock performance. Before the IPO, the promoters of Happy Forgings collectively held a robust 88.24% stake in the company.
As the gears of the IPO mechanism turned, there’s been a noticeable shift in these holdings. Post the IPO, we’re looking at a revised promoter holding of 78.60%. This change signifies the promoters’ intent to share their stake in the growth journey with public investors while still maintaining a majority control, which reflects a vote of confidence in the company’s governance and market prospects.
The list of primary promoters includes Paritosh Kumar, Ashish Garg, Megha Garg, and various trusts and corporate entities associated with them. The sell-down in the offer for sale (OFS) is part of this decreased post-IPO shareholding. It includes a significant chunk of shares, with Paritosh Kumar Garg offloading 49.22 lakh shares. On the other hand, the India Business Excellence Fund will part with 22.37 lakh shares, which is also included in the OFS component of the IPO.
This strategic transition in promoter holding isn’t just a monetary adjustment; it’s a move that aligns the company for broader market reach and can potentially enhance governance through public participation. Notably, this dilution does not put the promoter commitment in doubt, as they still hold a substantial portion of the equity ensuring their decisions remain central to the company’s trajectory.
As we sift through the numerical layers of the Happy Forgings IPO, the adjustments in promoter shareholding post-issue shed light on the company’s structural changes gearing up for the future. Keeping an eye on these figures helps paint an informative picture not only of the IPO’s immediate impact but also of the long-haul financial architecture of Happy Forgings.
Happy Forgings IPO Anchor Investors Details
As I dive deeper into the specifics of the Happy Forgings IPO, it’s crucial to examine the cornerstone of the floatation – the anchor investors. They play a pivotal role in reinforcing investor confidence, and their involvement often indicates the market’s initial reception of the IPO. On December 18, 2023, the company managed to secure a substantial commitment from these pivotal players.
The IPO garnered impressive traction with anchor investors, who were presented with a lot size of 3,559,740 shares. The total amount raised from this segment hits a staggering ₹302.58 crore, which not only reflects the inherent value proposition of Happy Forgings but also sets a positive tone for the overall subscription levels.
|Amount (In Cr.)
|December 18, 2023
Anchor investors adhere to a lock-in period, which for Happy Forgings, is split into two phases. 50% of the allocated shares enter the first lock-in phase, which terminates on February 5, 2024. The remaining shares are locked in until April 29, 2024, ensuring a steady post-IPO market without precipitous actions by these substantial stakeholders.
What’s particularly noteworthy is the detail on the lock-in period, which stipulates a structured release of shares. This mitigates sudden market fluctuations and underscores a commitment to a sustained investment outlook. Careful attention has been devoted to balancing the release of shares, which invariably cultivates a stable trading environment post-IPO.
The dynamics of anchor investor participation provide a glimpse into the prospects of Happy Forgings. It showcases the trust that marquee investors place in the company’s potential and lays down the groundwork for the remaining investors. With this strong start, the interest and eagerness among retail and institutional investors alike are expected to accelerate, nudging the IPO toward full subscription.
Happy Forgings IPO Reservation
When delving into the Happy Forgings IPO, it’s crucial to understand the distribution of shares across various investor categories. The company has structured the allotment in accordance with SEBI’s mandates. Qualified Institutional Buyers (QIBs) are earmarked 50% of the total shares, offering a significant stake to institutions such as banks, mutual funds, and insurance companies.
Of the total 11,865,801 shares on offer, Non-Institutional Investors (NIIs) get a slice of the pie, with 15% reserved for them. This often includes corporate bodies and high-net-worth individuals seeking larger investments. Within the NII category, further subdivision allocates shares to bigger investors (bNII), who are eyeing investments above ₹10L, and smaller investors (sNII), focusing on investments below ₹10L.
Retail Individual Investors (RIIs), looking to invest in smaller amounts, have a sizable portion as well. 35% of the shares are available to them, offering an opportunity for numerous individual investors to participate in the IPO. This democratizes the investment process, enabling a broader range of investors to get a share of Happy Forgings’ future.
Here’s a breakdown of the Reservation structure:
With anchor investors already demonstrating confidence in the IPO by committing to a substantial 30% of the offering, the stage is set for a robust subscription. It’s important to note that the early commitment of anchor investors often triggers a positive outlook among other investor categories.
Happy Forgings Limited Financial Information
Digging deeper into the financials of Happy Forgings Limited, I’ve uncovered some revealing trends. The company’s assets have shown a consistent upward trajectory over the past few years. As of September 30, 2023, assets stood at a robust ₹1,489.80 crore. This marks an impressive growth from ₹876.38 crore on March 31, 2021.
Revenue figures also paint a picture of solid growth. Despite a slight dip to ₹675.73 crore in the period ended September 30, 2023, the company generated a notable ₹1,202.27 crore in revenue by the close of the fiscal year on March 31, 2023. This represents a significant climb from ₹590.81 crore back in March 2021.
Let’s look closer at profitability. The Profit After Tax (PAT) recorded a rise with the company securing ₹119.30 crore by September 2023. Just looking back at March 2021, the PAT was almost 40% lower, at ₹86.45 crore.
Interesting trends are seen in the company’s net worth and reserves as well. Happy Forgings Limited’s net worth escalated to ₹1,103.33 crore from ₹645.16 crore between March 2021 and September 2023. In tandem, the reserves and surplus swelled from ₹636.21 crore to ₹1,088.25 crore.
Here’s a succinct breakdown of the key financial metrics:
|Profit After Tax (PAT)
|Reserves and Surplus
|30 Sep 2023
|31 Mar 2023
About Happy Forgings Limited
When I examine the trajectory of strong contenders in the Indian market, Happy Forgings Limited is a name that demands attention. Based in Ludhiana, this dynamic enterprise has carved out a formidable niche in the manufacturing sector, specifically distinguished by its robust growth in assets and revenues. To put into perspective, as of September 30, 2023, Happy Forgings Limited’s assets have soared to a remarkable ₹1,489.80 crore from just ₹876.38 crore a little over two years prior, signaling a company on a rapid ascension.
Their financial journey doesn’t end there. Turnover, a key indicator of a company’s health, tells a similar story of escalation; it skyrocketed to ₹1,202.27 crore by March 31, 2023, up from ₹590.81 crore at the end of March in 2021. This nearly doubling of revenue within a two-year span illustrates a trajectory that many businesses can only aspire to achieve.
In terms of profitability, Happy Forgings Limited has demonstrated substantial prowess, with Profit After Tax (PAT) ascending to ₹119.30 crore by September 2023, an impressive jump from ₹86.45 crore in March of the previous year. The company’s net worth and reserves also follow this growth trend, underscoring the management’s ability to not only retain earnings but also enhance shareholder value effectively.
The IPO launched on December 19, 2023, is a clear move by Happy Forgings Limited to capitalize on their growth momentum. Aiming to raise Rs 1008.59 crore at a price band of ₹808 to ₹850 per share, the company has outlined strategic plans for these funds. Their intent is to invest in the purchase of new equipment, improve plant and machinery, and prepay certain outstanding borrowings, all of which are expected to further accelerate their growth.
Surpassing expectations, the IPO was oversubscribed by over 3 times on just the second day, showcasing the investor confidence in Happy Forgings Limited. This significant interest is corroborated by brokerage firms that recommend a long-term subscription, with the anticipation of substantial returns. They are betting on the company’s future, and by all financial metrics, it seems like a wise move.
Happy Forgings IPO Review
When analyzing the Happy Forgings IPO, I can’t help but note the buzz it’s creating in the investor circle. I’ve seen the subscription numbers, which speak volumes about the market’s confidence in this offering. Anil Singhvi’s positive outlook, highlighting the company’s seasoned promoters and sustained capital expenditure for robust growth, resonates with several investors’ sentiments. After going through his review, the clarity of the company’s operational strengths is undeniable. Additionally, the claim of high working capital requirements suggests an aggressive strategy for scaling operations.
Watching video reviews from financial analysts on YouTube solidifies the perspective that Happy Forgings is a company with potential. They often break down the complexities of IPOs, making it easier to understand the risks and rewards associated with this investment. However, let me remind you that applying for an IPO should always come after meticulous research and, preferably, a consultation with a financial advisor.
Well, the IPO price band has been set within a range indicating a strong valuation of the company, pegged at ₹808 to ₹850 per share. With the required minimum investment for retail investors set at ₹14,450, it seems accessible to many public investors. For various investor classes, the varying lot size—from 17 shares for retail individuals to 1190 for bigger non-institutional investors—shows a structured approach to attracting a diverse pool of investors.
The enthusiasm shown by the market could also be partly attributed to the strong lineup of book-running lead managers, including reputed names like JM Financial Limited and Motilal Oswal Investment Advisors Limited. With such financial stalwarts handling the IPO processes, it gives a layer of credibility to the entire offering. As for the listing dates, all eyes are on the tentative date of December 27, 2023, when the shares will make their debut on BSE and NSE.
I’m keenly looking forward to how the IPO pans out, considering oversubscription and investor interest on just the second day. The financial world never fails to amaze; Happy Forgings IPO could be one of those defining moments in stock market trends for the year.
Happy Forgings IPO Strengths and Weaknesses
I’ve watched the Happy Forgings IPO story unfold with keen interest. The company’s robust financials and the overwhelming response to its IPO suggest a strong market confidence. With seasoned promoters at the helm and an aggressive growth strategy, there’s a palpable excitement about its future. Retail investors have a chance to get in on the action, albeit with a minimum investment. As the stock market awaits the results, I’m optimistic about the potential ripple effects. This IPO could be a bellwether for the industry, signaling a bullish sentiment for similar ventures. Keep an eye on this space—Happy Forgings might just forge a path for others to follow.
How to Apply for Happy Forgings IPO
To apply for the Happy Forging Limited IPO in Zerodha, you can follow these steps: