Happy Forgings Ltd IPO
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Happy Forgings Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 118.66 L | ₹ 71.6 L | ₹ 41.53 L | ₹ 789.7 L | BSE | ₹ 1008.59 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 19 Dec, 23 | 21 Dec, 23 | 17 | ₹ 13,736 | Book Building | 27 Dec, 23 |
Happy Forgings Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Castings & Forgings |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 85.86x | 5932901 | 509404218 |
| NII | 63.45x | 1779870 | 112932598 |
| Retail | 15.4x | 4153031 | 63961650 |
| Employee | 0x | 0 | 0 |
| Total | 57.84x | 11865802 | 686298466 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Happy Forgings Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 389.12 | 334.21 | 229.79 |
| EBITDA | 453.85 | 388.39 | 267.53 |
| PAT | 242.99 | 208.70 | 142.28 |
| Total Assets | 745.42 | 495.81 | 428.13 |
| Share Capital | 18.84 | 17.90 | 17.90 |
| Total Borrowings | 154.80 | 226.49 | 203.60 |
| Operating Activities (Net Cash) | 307.72 | 262.88 | 180.02 |
| Investing Activities (Net Cash) | -126.59 | -74.75 | -211.85 |
| Financing Activities (Net Cash) | 154.80 | 226.49 | 203.60 |
| Net Cashflow | 117.36 | 0.34 | 1.46 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Happy Forgings Ltd
Happy Forgings Limited was incorporated as `Happy Forgings Private Limited' at Jalandhar, Punjab as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated July 2, 1979, issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. Thereafter, the Company was converted from a private limited company to a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on March 31, 1998, and the name of the Company was changed to `Happy Forgings Limited', and a fresh certificate of incorporation dated April 1, 1998 was issued to the Company by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh.
The global forging and machining markets are estimated to be valued at approximately USD 71.9 billion and USD 52.5 billion, respectively, in 2023 and is expected to grow at a CAGR of 5.1% and 5.2% to reach USD 97.0 billion and USD 71.2 billion, respectively, by 2029. Further, the forging and machining markets in India are estimated to be valued at approximately USD 7.3 billion and USD 5.4 billion, respectively, in Fiscal 2024 and is expected to grow at a CAGR of 7.1% and 8.4% to reach USD 10.2 billion and USD 8.0 billion, by Fiscal 2029, respectively.
Happy Forgings Limited is an engineering led manufacturer of safety critical, heavy forged and high precision machined components. The Company manufactures a wide range of forged and machined products such as crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, planetary carriers, suspension brackets and valve bodies across industries for a diversified base of customers. The Company caters to domestic and global OEMs manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, it caters 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.
Peer Comparison:
- Bharat Forge Ltd
- Craftsman Automation Ltd
- Ramkrishna Forgings Ltd
- Sona BLW Precision Forgings Ltd
Happy Forgings Ltd IPO Key Points
Strengths
- Fourth largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India.
- Integrated manufacturing operations coupled with in-house product and process design capabilities resulting in a diverse product portfolio with increasing value addition.
- Diversified business model, well placed to take advantage of potential alternative engine technologies.
- Long-standing relationships with customers across industries.
- Track record of consistently building capabilities and infrastructure, with focus on capital efficiency.
Risk
- The company's business largely depends upon its top 10 customers which contributed 70.08%, 74.64% and 79.22% in Fiscal 2023, 2022 and 2021. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company does not have firm commitment agreements with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition,cash flows and results of operations.
- The company's business is dependent on the performance of certain industries particularly commercial vehicles, farm equipment and off-highway vehicles both in the Indian and overseas markets. Any adverse changes in the conditions affecting these industries can adversely impact its business, results of operations, cash flows and financial condition.
Strategy
- Leverage in-house engineering and product development capabilities to grow its product portfolio and tap growing business opportunities in the industrial markets.
- Foray into lightweight forging and machining with introduction of aluminium components.
- Increase its wallet share and acquire new business by leveraging existing OEM relationships and adding new customers.
- Capitalise on increasing demand from international markets to grow exports.
- Expand capacity at its existing manufacturing facilities.
- Fourth largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India.
- Integrated manufacturing operations coupled with in-house product and process design capabilities resulting in a diverse product portfolio with increasing value addition.
- Diversified business model, well placed to take advantage of potential alternative engine technologies.
- Long-standing relationships with customers across industries.
- Track record of consistently building capabilities and infrastructure, with focus on capital efficiency.
How To Apply for Happy Forgings Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.