About the Company
Established in July 1979, Happy Forgings Limited stands as a prominent Indian manufacturer specializing in the design and production of heavy forgings and high-precision machined components.
The company boasts expertise in manufacturing, designing, and testing a diverse range of products, including crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies. These products cater to various industries, serving a distinguished clientele.
Happy Forgings Limited has built a robust customer base, collaborating with renowned entities such as AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, Bonfiglioli Transmissions Private Limited, Dana India, IBCC Industries (India) Private Limited, International Tractors Limited, JCB India Limited, Liebherr CMCtec India Private Limited, Mahindra & Mahindra Limited, Meritor HVS AB, Meritor Heavy Vehicle Systems Cameri SPA, SML ISUZU Limited, Swaraj Engines Limited, and others.
The company’s global reach extends to regions like Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America.
Happy Forgings Limited operates from three manufacturing facilities, strategically located in Kanganwal (two facilities) and Dugri, all situated in Ludhiana, Punjab. Notably, in the fiscal year 2023, the company has achieved an impressive 43.02% increase in operational revenue, reflecting its sustained growth and success in the industry.
Happy Forgings IPO Details
| IPO Date | December 19, 2023 to December 21, 2023 |
| Face Value | ₹ 2 per Share |
| Price Band | ₹808 to ₹850 per share |
| Lot Size | 17 Shares |
| Total Issue Size | 11,865,802 shares (aggregating up to ₹1,008.59 Cr) |
| Fresh Issue | 4,705,882 shares (aggregating up to ₹400.00 Cr) |
| Offer for Sale | 7,159,920 shares of ₹2 (aggregating up to ₹608.59 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 89,499,000 |
| Shareholding post issue | 94,204,882 |
Happy Forgings IPO Lot Size
| Application | Lots | Shares | Amount (₹) |
| Retail (Min) | 1 | 17 | ₹14,450 |
| Retail (Max) | 13 | 221 | ₹1,87,850 |
| S-HNI (Min) | 14 | 238 | ₹2,02,300 |
| S-HNI (Max) | 69 | 1,173 | ₹9,97,050 |
| B-HNI (Min) | 70 | 1,190 | ₹1,011,500 |
Happy Forgings IPO GMP
Happy Forgings IPO GMP is ₹435 as on 21st December,2023.
Happy Forgings Limited Financial Information
₹ in Crores
| Particulars | 30 Sep,2023 | 31 March,2023 | 31 March,2022 | 31 March,2021 |
| Assets | 1,489.80 | 1,326.17 | 1,129.87 | 876.38 |
| Revenue | 675.73 | 1,202.27 | 866.11 | 590.81 |
| Profit after Tax | 119.30 | 208.70 | 142.29 | 86.45 |
Key Performance Indicator
| KPI | Values |
| P/E (x) | 36.45 |
| Post P/E (x) | 33.56 |
| Market Cap (₹ Cr.) | 8007.42 |
| ROE | 21.12% |
| ROCE | 24.24% |
| EPS (₹) | 23.32 |
| RONW | 21.12% |
Strengths of Happy Forgings Limited IPO:
- Robust Financial Performance: Happy Forgings Limited has demonstrated a consistent and robust financial performance over the years. This is reflected in its strong revenue growth, healthy profit margins, and positive cash flows. Investors may find the company’s financial stability appealing.
- Diversified Product Portfolio: The company boasts a diversified product portfolio catering to various industries such as automotive, aerospace, and energy. This diversification not only helps in mitigating risks associated with a specific sector but also positions the company well to capitalize on opportunities in multiple markets.
- Strategic Alliances and Partnerships: Happy Forgings Limited has established strategic alliances and partnerships with key players in the industry. These collaborations can enhance the company’s market reach, provide access to new technologies, and contribute to a competitive edge in the market.
Risks of Happy Forgings Limited IPO:
- Dependency on Economic Conditions: The company’s performance may be susceptible to economic downturns. Fluctuations in economic conditions, particularly in sectors such as automotive and aerospace, could impact demand for the company’s products, potentially leading to decreased revenue and profitability.
- Competition and Market Risks: The industry in which Happy Forgings Limited operates is highly competitive. Intense competition from existing players and potential new entrants could exert pressure on pricing and market share. Failure to adapt to changing market dynamics may pose a risk to the company’s sustained growth.
- Supply Chain and Raw Material Volatility: The company’s operations are subject to risks associated with supply chain disruptions and volatility in raw material prices. Any disruptions in the supply chain or significant fluctuations in material costs could impact production schedules, leading to potential delays and increased operational costs.
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