Forging Success - Happy Forgings to Come Up With Its IPO
About the Company
With over 40+ years of experience, Happy Forgings is India's fourth-largest engineering-driven manufacturer of heavy forged and highly precision-machined components, focusing on complex and safety-critical products. Operating through a vertically integrated approach, the company specializes in engineering, process design, testing, manufacturing, and the supply chain for various components.
The company produces a diverse array of heavy forged and machined products, serving various industries. Its product range encompasses crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products, and valve bodies. These are supplied to a broad customer base, reflecting the company's commitment to serving various industries.
Financial Snapshot
Happy Forgings Limited has consistently grown its revenue, profitability, and efficiency. The company has showcased a positive financial trend by improving its return on net worth (RoNW) and earnings per share (EPS) and reducing its debt-to-equity ratio. Here are some of its key financial details for FY 23.
| Revenue from Operations | Rs 11,965.30 million |
|---|---|
Restated Profit | Rs 2,087.01 million |
Return on Net Worth | 21.12% |
Total Assets | Rs 13,261.68 million |
Total Liabilities | Rs 3,378.61 million |
IPO Details
The company plans to raise Rs 1,009 crore from its IPO, which consists of a fresh issue of Rs 400 crore and an offer-for-sale of Rs 0.72 crore. Other details are as follows:
| IPO Subscription Opens On | December 19 |
|---|---|
IPO Subscription Ends On | December 21 |
Price Band | Rs 808-850 per share |
Lot Size | 17 shares and multiples of 17 after that |
With the proceeds received, the company plans to:
- Acquire plant, equipment, and machinery with a total cost of Rs 171.1 crore
- Allocate Rs 152.76 crore to repay debt
- Utilize the funds for general corporate purposes
How to Apply for Happy Forgings IPO?
Kotak Securities simplifies and streamlines the application process for this highly anticipated IPO, making it easy and convenient. To apply, follow these steps:
- Log in to your Kotak Securities Demat account and navigate to the current IPO section
- Enter the IPO details, specifying the number of lots and the desired price for your application
- Input your UPI ID and click on submit to place your bid with the exchange
- Get a notification on your UPI app for the funds blocking process
- Once approved, your funds will be successfully blocked for the IPO application
Summing it Up
In the forecast period of 2022-2029, the India metal forging market is expected to experience substantial growth, with projections indicating an increase from USD 4.32 billion in 2022 to USD 8.80 billion by 2029, reflecting a CAGR of 10.69%. India’s growing economy is likely to boost the sector, and Happy Forgings is well-positioned to drive growth from it. Investing in its IPO can help you in the long run.
That said, it’s essential for you as an investor to do due diligence and go through the company’s Draft Red Herring Prospectus (DHRP) to understand the various risk factors and take a call accordingly.
