Happy Forgings Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Happy Forgings

CMP

1,213.60

+5.95 (0.49%)

  • DRHP
₹850

Offer Price

₹ 1,008.59 Cr

Issue Size

₹ 14,450

Min Investment

82.04x

Times Subscribed

17

Lot size

Time Line

  • 19
    Dec 2023
    Open
  • 21
    Dec 2023
    Close
  • 22
    Dec 2023
    Finalisation of Basis of Allotment
  • 26
    Dec 2023
    Initiation of Refunds
  • 26
    Dec 2023
    Transfer of Shares to Demat Account
  • 27
    Dec 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • 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.

Products & Services

  • Happy Forgings Limited is an engineering led manufacturer of safety critical, heavy forged and high precision machined components.

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.

Risks

  • 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.

Company Promoters

Promoters Holding

Issue For IPO
9.63%
Pre Holding

88.24%

Post Holding

78.61%

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 860.05 (47.00%) 1,196.53 (39.10%) 21.12 (-)
Gross Profit 860.05 (47.00%) 1,196.53 (39.10%) 21.12 (-)
Net Income 860.05 (47.00%) 1,196.53 (39.10%) 21.12 (-)
Assets 860.05 (47.00%) 1,196.53 (39.10%) 21.12 (-)
Liabilities 860.05 (47.00%) 1,196.53 (39.10%) 21.12 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Happy Forgings Ltd 1,196.53 208.70 1,206.82 218.51 21.12 23.32 110.43 4.03 0.18
Bharat Forge Ltd 12,910.26 528.36 18,384.19 18,384.19 7.87 11.35 144.78 2.87 1.02
Craftsman Automation Ltd 3,182.60 248.39 3,806.72 3,806.72 18.03 117.56 680.82 6.52 0.84
Ramkrishna Forgings Ltd 3,192.90 248.11 3,730.44 3,730.44 18.77 15.43 82.67 6.65 0.99
Sona BLW Precision Forgings Ltd 2,675.60 395.30 3,059.82 3,059.82 17.26 6.76 39.12 12.91 0.09

Book Running Managers

  • JM Financial Ltd
  • Axis Capital Ltd
  • Equirus Capital Pvt Ltd
  • Motilal Oswal Investment Advisors Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

B-XXIX 2254/1 Kanganwal Rd P O,
Jugiana,
Ludhiana - 141120
Phone : +91 161 521 7162 Email : complianceofficer@happyforgingsltd.co.in www.happyforgingsltd.com

Offer Related Information

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... More

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