Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
IPO News

| More

Ludhiana-based Auto Component Maker Happy Forgings Limited receives Sebi nod to float its IPO

Posted On: 2023-11-03 17:53:51 (Time Zone: IST)


Ludhiana-based Happy Forgings Ltd, the fourth largest engineering-led manufacturer of complex and safety-critical, heavy forged and high precision machined components in India as of Fiscal 2023 in terms of forgings capacity has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The company had filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi in the month of August 2023.

The IPO with a face value of Rs 2 comprises of a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to 8.05 million shares by Promoter and selling shareholders.

The offer for sale comprises of up to 5.37 million equity shares by Paritosh Kumar Garg (HUF), up to 2.68 million equity shares by India Business Excellence Fund - III.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement of specified securities for a cash consideration aggregating up to Rs 100 crore ("Pre-IPO Placement"). If such placement is completed, the fresh issue size will be reduced.

As per the DRHP, the proceeds from the fresh issue will be utilised to the extent of Rs 213.60 crore towards purchase of equipment, plant and machinery, up to Rs 190 crore for prepayment of all or a portion of certain outstanding borrowings availed by the Company and general corporate purposes. The Auto Component manufacturer employs a vertically integrated approach encompassing engineering, process design, testing, manufacturing, and supply of diverse components. Its primary clientele includes both domestic and global OEMs in the commercial vehicle sector, while also serving non-automotive markets like farm equipment, off-highway vehicles, and industrial machinery spanning oil and gas, power generation, railways, and wind turbine industries.

Moreover, the company's concentration on the high horsepower (HP) engine sector safeguards it against potential disruptions stemming from the emergence of electric vehicles (EVs), given its engagement in hydrogen, compressed natural gas (CNG), and liquefied natural gas (LNG) internal combustion engines.

The company's primary emphasis lies in the creation of more substantial, high-precision, critical, and value-added items for diverse end-use sectors. These products often necessitate exceptionally tight tolerances, meaning they must adhere to precise and specific measurement and tolerance criteria.

With over 40 years of experience, the company holds a prominent position in India's crankshaft manufacturing sector. It ranks second in production capacity for commercial vehicle and high-horsepower industrial crankshafts (Source: Ricardo Report). By prioritizing value-driven products, it successfully transitioned from forging to machined components manufacturing. Its extensive product range covers heavy forged and machined items such as crankshafts, axle beams, steering knuckles, transmission parts, and more, serving diverse customers across various industries.

The company's unique strength lies in producing high-precision safety-critical components for leading OEMs in commercial vehicles, farm equipment, off-highway, and industrial sectors. Its long-standing relationships with top Indian and global OEMs have solidified its position as a trusted supplier.

The revenue generated from the sale of machined items has surged from ?3,992.02 million in Fiscal 2021 (constituting 72.88% of the total revenue from product sales in that fiscal year) to ?8,392.33 million in Fiscal 2023 (making up 78.66% of the total revenue from product sales in that fiscal year). This reflects a compounded annual growth rate (CAGR) of 44.99%, highlighting the company's heightened emphasis on machined products.

Among its notable customers are AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, Dana India, JCB India Limited, Mahindra & Mahindra Limited, Meritor HVS AB, SML ISUZU Limited, Tata Cummins Private Limited, and others. Operating in nine countries, including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the USA, it maintains a global reach. With three manufacturing facilities in Ludhiana, Punjab, it has expanded its annual capacity for forging and machining to 107,000.00 MT and 46,100.00 MT, respectively, by March 31, 2023.

For the fiscal year 2023, the consolidated revenue from operations increased 39.12% to Rs 1196.53 crore against Rs 860.05 crore a year ago and doubled its revenue from Rs 584.96 crore in fiscal 2021 to Rs 1196.53 crore in fiscal 2023. Net profit increased by 46.67% from Rs 142.29 crore in fiscal 2022 to Rs 208.70 crore in fiscal 2023. Its experience of strategically adding capacity coupled with its commitment to capital efficiency has resulted it in recording the highest ROCE among peers in Fiscal 2023.

The forging and machining markets in India are estimated to be valued at approximately USD 7.30 billion (Rs 60,670 crore) and USD 5.40 billion (Rs 44879.45 crore), respectively, in Fiscal 2024 and is expected to grow at a CAGR of 7.10% and 8.00% to reach USD 10.20 billion (Rs 84,772.30 crore) and USD 8.00 billion (Rs 66,488.08 crore), by Fiscal 2029, respectively, according to a Ricardo Report.

JM Financial Limited, Axis Capital Limited, Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.


Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Bharat Highways InvIT IPO subscribed 0.37 times on Day 1

Platinum Industries IPO subscribed 22.22 times on Day 2

Mumbai-based Garuda Construction and Engineering files DRHP for IPO

Bharat Highways InvIT raises Rs. 825.97 Crore from Anchor Investors

Platinum Rush : Retail and NII Investors make hurry, Issue subscribed 8.06 times on Day 1

Platinum Industries Limited raises Rs. 70.59 crore from Anchor Investors

GPT Healthcare IPO subscribed 8.52 times on Final Day

Mukka Proteins Limited IPO to open on Thursday February 29, 2024

Retail Portion of GPT Healthcare IPO fully subscribed on Day 2

Juniper Hotels IPO subscribed 2.07 times on Final Day

Backed by marquee investors, Trust Fintech eyes listing in March 2024 on NSE Emerge

Retail Portion of GPT Healthcare IPO subscribed 66% on Day 1

Retail Portion of Juniper Hotels IPO subscribed 87% on Day 2

Bharat Highways InvIT's IPO of its units to open on Wednesday, February 28, 2024, price band set at ?98 to ?100 per Unit

GPT Healthcare Limited raises Rs. 157.54 crore from Anchor Investors

Juniper Hotels IPO Retail Portion subscribed 52% on Day 1

IT Solutions provider Orient Technologies files DRHP for IPO

Juniper Hotels Limited raises Rs. 810 crore from Anchor Investors

IPO of GPT Healthcare Limited to open on Thursday, February 22, 2024, price band set at ?177/- to ?186/- per Equity Share

Gala Precision Engineering files DRHP for IPO

Vibhor Steel Tubes IPO subscribed 320 times with bids worth Rs. 16,211 crore

IPO of Juniper Hotels Limited to open on Wednesday, February 21, 2024, price band set at ?342 to ?360 per equity share

Gopal Snacks Limited gets Sebi nod for Rs 650 crore IPO

Vibhor Steel Tubes IPO gets subscribed within 30 minutes of opening

Trust Fintech Limited, SaaS product-focused fintech software solution provider, files DRHP

Interiors and More Limited IPO to open for subscription on Feb 15, 2024

Rashi Peripherals IPO subscribed 59.71 times on Final Day

Rashi Peripherals IPO subscribed 3.19 times on Day 2

Rashi Peripherals IPO fully subscribed on Day 1 led by NII and Retail

Juniper Hotels gets Sebi nod for its Rs 1,800 crore IPO

Rashi Peripherals Limited raises Rs. 180 crore from Anchor Investors

IPO of Rashi Peripherals Ltd to open on Wednesday 7 February, 2024, price band set at ?295 to ?311 per Equity Share

KP Green Engineering Limited files DRHP for SME IPO

Nova Agritech IPO subscribed 109.36 times on Final Day

Fonebox Retail Limited anchor book fully subscribed

Nova Agritech IPO subscribed 33.87 times on Day 2

TCS Ranks No. 1 in Customer Satisfaction in France for 5th year

Nova Agritech IPO subscribed 9.75 times on Day 1 led by Retail and NII

Nova Agritech Limited raises ? 43.14 crore from Anchor Investors

IT Solutions major, Rashi Peripherals raised Rs 150 crore in Pre-IPO round

Fonebox Retail IPO date has been set, with the IPO opening on January 24

Nova Agritech Limited's IPO to open on Monday January 22, 2024

Medi Assist Healthcare Services Ltd IPO opens for subscription on Monday - Jan 15, 2024

Konstelec Engineers Limited plans to raise around 25 crores through an IPO, aiming to be listed on NSE Emerge this January

Payment Platform MobiKwik refiles DRHP with SEBI for Rs 700 crore IPO

Jyoti CNC Automation Limited's IPO to open on January 09, 2024

Gretex Share Broking files papers for IPO

Diffusion Engineers files DRHP with SEBI for IPO

Rays Power Infra files DRHP for IPO

FirstCry.com files DRHP for IPO


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020