Happy Forgings Raises Rs 303 Cr From Anchor Investors

Happy Forgings Ltd gears up for its IPO, securing Rs 303 crore from anchor investors, including global financial giants.
Happy Forgings Raises Rs 303 Cr From Anchor Investors

Auto components maker Happy Forgings Ltd on Monday said it has mobilised Rs 303 crore from anchor investors ahead of its initial share-sale opening on Tuesday.

The company has allotted 35.6 lakh equity shares to 25 anchor investors at Rs 850 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.

Investors who participated in the anchor book include Fidelity International, Neuberger Berman, Morgan Stanley, Janchor Partners, WhiteOak Capital, and Eastbridge Capital.

Of the total allocation of 35.6 lakh equity shares to the anchor investors, the largest pie went to 14 domestic mutual funds amounting to Rs 174 crore -- 58 per cent of the total anchor book size with an allocation of 20.46 lakh equity shares.

The IPO comprises a fresh issue of equity shares worth Rs 400 crore and an Offer For Sale (OFS) of up to 71.6 lakh shares by a promoter and a selling shareholder.

Paritosh Kumar Garg (HUF) and India Business Excellence Fund III are the selling shareholders in the OFS.

The issue, with a price band of Rs 808-850 per share will open for subscription from December 19-21.

Proceeds from the fresh issue will be utilised towards the purchase of equipment, plants, and machinery, the payment of debt and a portion of the funds will also be used for general corporate purposes.

At the lower and upper end of the price band, the IPO is expected to mop up Rs 978.52 crore and Rs 1,008.6 crore, respectively.

The Ludhiana-based auto component maker's primary clientele includes domestic and global Original Equipment Manufacturers (OEMs) in the commercial vehicle sector.

It also serves non-automotive markets like farm equipment, off-highway vehicles, and industrial machinery.

Ashok Leyland Ltd, JCB India Ltd, Mahindra & Mahindra Ltd, SML ISUZU Ltd, and Tata Cummins are among its customers.

The company has operations in nine countries -- Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the US.

The company's consolidated revenue from operations rose 39.12 per cent to Rs 1,196.53 crore for FY23 from Rs 860.05 crore in the preceding fiscal.

The net profit jumped 46.67 per cent to Rs 208.70 crore in FY23 from Rs 142.29 crore in FY22.

JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running lead managers.

The equity shares are proposed to be listed on the BSE and the NSE.

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