The Happy Forgings IPO is set to launch with a price band ranging from ₹808 to ₹850 per equity share, each having a face value of ₹2. The subscription period for the IPO is from Tuesday, December 19, to Thursday, December 21. The allocation to anchor investors is scheduled for Monday, December 18.
The floor price, set at 404 times the face value, and the cap price, set at 425 times the face value, determine the pricing range for the IPO. The price-to-earnings ratio, based on diluted earnings per share for the financial year 2023, is 34.65 times at the floor price and 36.45 times at the cap price.
Investors can participate in the IPO with a lot size of 17 equity shares, and subsequent multiples of 17 equity shares. The offering reserves up to 50% of the shares for qualified institutional buyers (QIBs), a minimum of 15% for non-institutional investors (NIIs), and at least 35% for retail investors.
The basis of allotment for Happy Forgings IPO is expected to be finalized on Friday, December 22. Refunds will be initiated on Tuesday, December 26, and shares will be credited to the demat accounts of allottees on the same day. Happy Forgings is anticipated to be listed on the BSE and NSE on Wednesday, December 27, in accordance with the mandatory T+3 listing norm effective from December 1, 2023.
The IPO comprises a fresh issue of shares up to ₹400 crore and an offer for sale (OFS) of up to 7,159,920 equity shares by a promoter and other selling shareholders. The net proceeds from the new issue will be used for purchasing machinery, plant, and equipment, repaying outstanding loans, and general corporate purposes.
The company expects the IPO to enhance visibility, brand image, and create a public market for its equity shares in India. Happy Forgings’ listed peers include Bharat Forge Limited, Craftsman Automation Limited, Ramkrishna Forgings Limited, and Sona BLW Precision Forgings Limited, with varying price-to-earnings ratios.
In the fiscal year ending March 31, 2022, Happy Forgings Limited reported a 38.81% increase in revenue and a 46.67% increase in profit after tax (PAT).
