The initial public offer (IPO) of Happy Forging received bids for 6,23,78,219 shares as against 83,65,639 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (20 December 2023). The issue was subscribed 7.46 times.

The issue opened for bidding on Tuesday (19 December 2023) and it will close on Thursday (21 December 2023). The price band of the IPO is fixed at Rs 808-850 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

The public offer comprises a fresh issue of equity shares aggregating up to Rs 400 crore by the company and an offer for sale (OFS) of upto 71,59,920 equity shares by the selling shareholders. OFS comprise sales of 5607700 equity shares by Paritosh Kumar Garg (HUF), a promoter selling shareholder, and 10529000 equity shares by India Business Excellence Fund III, an Investor selling shareholder. India Business Excellence Fund III will hold 8.8% of the post issue equity.

Of the net proceeds of the issue, the company intend to spend Rs 285 crore towards repayment and prepayment of the aggregate outstanding borrowings of the company and its subsidiaries; Rs 35 crore towards acquisition of land or land development rights and balance for general corporate purposes.

Total outstanding borrowings as of 31 October 2023, amounted to Rs 259.942 crore.

Ahead of the IPO, Happy Forging on Monday, 18 December 2023 raised Rs 302.57 crore from anchor investors. The board allotted 35.59 lakh shares at Rs 850 each to 34 anchor investors.

Happy Forgings (HFL) is an engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India. The company manufactures a wide range of heavy forged and machined products (with closed tolerances as low as 0.005 to 0.2 millimetre) 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.

The firm reported a net profit of Rs 119.30 crore and income from operations of Rs 672.90 crore for the six months ended on 30 September 2023.