Mumbai: The much-awaited initial public offering (IPO) of Happy Forgings Ltd. kicked off on December 19, witnessing tremendous enthusiasm from investors. Happy Forgings, a leading player in the manufacture of heavy forgings and high-precision machined components, is looking to raise Rs 1,008.59 crore through its IPO, which is scheduled to close on December 21.
Happy Forgings Ltd Share Price
On opening day, the Happy Forgings IPO gained significant traction with 2.31 times oversubscription. According to data available on the National Stock Exchange, the public issue received a tender of 19.3 million equity shares against an offer of 8.365 million shares. The retail segment showed a particularly strong response, being oversubscribed 3.02 times, while non-institutional investors (NII) showed a 3.58 times oversubscription. The Qualified Institutional Buyer (QIB) segment receives 1% of bookings.
The IPO is valued at Rs 1,008.59 crore, which includes a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of 71.59 lakh shares. The Happy Forgings IPO has a price range of ₹808 to ₹850 per share, a lot size of 17 shares, and a minimum investment requirement of ₹14,450 for retail investors.
Happy Forgings will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), and the tentative listing date has been set for December 27.
Grey Market Premium (GMP) and Financial Outlook
According to the latest market observations, the gray market premium (GMP) for the Happy Forgings IPO is ₹415 per share. This represents a premium of 48.82% over the issue price, indicating strong investor confidence in the company’s prospects.
Investment analysts at Swastika Investmart Ltd. favor Happy Forgings’ IPO, citing a commendable track record and promising future prospects, as well as an attractive valuation of 36.44x P/E. The brokerage firm rates the IPO ‘subscribe’ for both short-term listing gains and long-term investment prospects.
Happy Forgings has already raised Rs 303 crore from anchor investors and allotted 35,59,740 equity shares at ₹850 per share. JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are acting as book-running lead managers, while Link Intime India Pvt Ltd is the registrar of the IPO.
The net proceeds from the IPO are for the purchase of equipment, plants, and machinery, the early repayment of outstanding debt, and general corporate purposes.
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