Happy Forgings Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹850
Per ShareLot Size
17 Shares
Minimum Investment
₹14,450
Issue Size
₹1,008.59 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Happy Forgings Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
88.24%
Promoter Holding (Post-Issue)
78.61%
Issue Type
Book Building
ISIN
INE330T01021
About the Company
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.
Industry Overview
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.
Company History
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.
Products & Services
- Happy Forgings Limited is an engineering led manufacturer of safety critical, heavy forged and high precision machined components.
Growth 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.
- Continue to reduce operating costs and improve operational efficiencies.
- Grow inorganically through strategic acquisitions and alliances
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 11,865,802 equity shares*** of face value of Rs. 2 each of the company ("Equity Shares") for cash at a price of Rs. 850 per equity share (including a share premium of Rs. 848 per equity share) ("Offer Price") aggregating to Rs. 1008.59 crores*** ("Offer"). The offer comprises a fresh issue of 4,705,882 equity shares*** aggregating to Rs.400.00 crores*** ("Fresh Issue") and an offer for sale of 7,159,920 equity shares*** ("Offered Shares") aggregating to Rs. 608.59 crores***, 4,922,445 equity shares*** aggregating to Rs. 418.41 crores*** by Paritosh Kumar Garg (huf) (the "Promoter Selling Shareholder") and 2,237,475 equity shares*** aggregating to Rs. 190.19 crores*** by India Business Excellence Fund - iii (the "Investor Selling Shareholder" and together with the promoter selling shareholder, the "Selling Shareholders"), and such offer for sale of equity shares by the selling shareholders, the "Offer for Sale"). The offer will constitute 12.60% of the post offer paid up equity share capital of the company. ***Subject to finalisation of the basis of allotment. The face value of the equity share is Rs. 2 each. The offer price is 425 times the face value of the equity shares.f
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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.
- 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.
- The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failure by it to comply with these performance requirements may lead to the cancellation of existing and future orders, recalls or warranty and liability claims.
- The company's business and profitability is substantially dependent on the availability and cost of its steel, the company primary raw material and any disruption to the timely and adequate supply of steel, or volatility in the prices of Steel may adversely impact its business, results of operations, cash flows and financial condition.