Happy ForgingsLimited’s Initial Public Offering to open on Tuesday, December 19, 2023, sets price band at ₹808 to ₹850 per Equity Share

 

Happy ForgingsLimited’s Initial Public Offering to open on Tuesday, December 19, 2023, sets price band at ₹808 to ₹850 per Equity Share

 

·         Price Band of ₹808 – ₹850 per equity share bearing face value of ₹2 each (“Equity Shares”)

·         Bid/Offer Opening Date – Tuesday, December 19, 2023 and Bid/Offer Closing Date – Thursday, December 21, 2023.

·         Minimum Bid Lot is 17 Equity Shares and in multiples of 17 Equity Shares thereafter.

·         The Floor Price is 404 times the face value of the Equity Share and the Cap Price is 425times the face value of the Equity Share.

 

 Mumbai, December 14, 2023: Happy Forgings Limited (“HFL” or the “Company”),the fourth largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India      as of Fiscal 2023 in terms of forgings capacity (Source: ‘Industry Report on Global and Indian Forging and Machining Markets’ dated November 30, 2023  issued by Ricardo India Private Limited (“Ricardo Report”)), has fixed the price band at ₹808to ₹850per Equity Share for its initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, December 19, 2023, for subscription and close on Thursday, December 21, 2023. Investors can bid for a minimum of 17 Equity Shares and in multiples of 17 Equity Shares thereafter.

The public issue of Equity Sharescomprises of a fresh issuance of Equity Shares aggregating up to Rs. 4,000 million and anOffer for Sale (OFS) of up to 7,159,920Equity Shares.

HFL, a company through their vertically integrated operations and with over 40 years of experience in manufacturing and supplying quality and complex components according to customers specifications, are engaged in engineering, process design, testing, manufacturing, and supply ofa variety of components that are both margin-accretive and value-additive components. The Companyhas emerged as a leading player in the domestic crankshaft manufacturing industrywith the second largest production capacity for commercial vehicle and high horse-power industrial crankshafts in India (Source: Ricardo Report).

HFL primarily serves domestic and global original equipment manufacturers (“OEMs”), manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, they cater to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.

The Company owns and operate three manufacturing facilities, of which two are located at Kanganwal in Ludhiana, Punjab and one is located at Dugri in Ludhiana, Punjab. The annual aggregate installed capacity for forging and machining stands at 120,000.00 MT and 47,200.00 MT as of September 30, 2023, respectively.

HFL’s focus on producing margin accretive value-added products has led to its transition from being a forging led business to a machined components manufacturer.  The Company manufactures a wide range of heavy forged and machined products which include crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products and valve bodies across industries for a diversified base of customers.

HFL’s revenue from operations increased by 39.12% to ₹11,965.30 million in Fiscal 2023 from ₹8,600.46 million in Fiscal 2022. Restated profit after tax increased from ₹1,422.89 million in Fiscal2022 to ₹2,087.01 million in Fiscal2023.

For the six months ended September 30, 2023,the revenue from operations stood at ₹6,729.00 million and restated profit for the period stood at ₹1,192.99 million.

JM Financial Limited, Axis Capital Limited, Equirus Capital Private limited and Motilal Oswal Investment Advisors Limited are book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.