Happy Forgings files papers for ₹1,300 crore IPO with Sebi
₹1,200-1,300 crore through an initial public offering (IPO). According to the Happy Forgings’s DRHP, the IPO comprises a fresh issue of equity shares worth ₹500 crore and an offer for sale (OFS) of up to 80.55 lakh shares by a promoter and a selling shareholder. Ludhiana-based Happy Forgings may also consider a pre-IPO placement of shares aggregating up to ₹100 crore.
If such placement is completed, the fresh issue size will be reduced. As part of the OFS, 53.7 lakh equity shares will be offloaded by Paritosh Kumar Garg (HUF) and up to 26.85 lakh equity shares by India Business Excellence Fund-III. According to a report by PTI citing market sources, the IPO size is expected to be ₹1,200-1,300 crore.
The proceeds from the fresh issue to the tune of ₹213.6 crore will be utilized towards the purchase of equipment, plant, and machinery, up to ₹190 crore for payment of debt and a portion of funds will also be used for general corporate purposes, said the draft papers. JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the lead book-running managers for the issue. The auto parts maker employs a vertically integrated approach encompassing engineering, process design, testing, manufacturing, and supply of diverse components.
Its customers include Ashok Leyland, JCB India, Mahindra & Mahindra, SML ISUZU, and Tata Cummins. The company has operations in nine countries, namely Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the US. For the fiscal year 2023, the company had reporter consolidated revenue from operations at ₹1,196.53 crore, up 39.12% from ₹860.05 crore in the fiscal year 2022.
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