Happy Forgings IPO: Here are 10 key risk factors from RHP investors should know

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₹1,008.59 crore from the IPO that comprises a fresh issue of equity shares worth ₹400 crore and an offer for sale (OFS) of 71.59 lakh shares. Happy Forgings IPO price band has been set at ₹808 to ₹850 per share. Happy Forgings is a manufacturer of heavy forgings and high-precision machined components.

Also Read: Retail investors in top gear at IPOs, drive oversubscriptions Before investing in Happy Forgings IPO, investors must know all the details about the company, including the risk factors mentioned in the Red-herring prospectus (RHP). Below are 10 key risks factors of Happy Forgings IPO: 1) The business of Happy Forgings Ltd largely depends upon its top 10 customers. A significant portion of the company’s revenue comes from these 10 clients.

The loss of any of these customers poses a risk to the company’s business and financial condition. 2) The company depends on a few suppliers for the supply of steel, their primary raw material. Further, it does not have definitive supply agreements with suppliers for the supply of steel.

Therefore, interruptions in the supply of steel could adversely affect its business. 3) 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 poses a risk.