Happy Forgings IPO

Happy Forgings Limited

₹13,736 /17 sharesMinimum Investment

Happy Forgings IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹850.00₹1,001.00₹151.00 (17.76%)

Happy Forgings IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
19 Dec ‘23 - 21 Dec ‘23₹13,73617₹808 - ₹850
Issue SizeIPO Doc
1008.59Cr
RHP PDF

Subscription Status As on 21 Dec '23, 5:20 PM

  • Qualified Institutional Buyers
    220.48x
  • Non-Institutional Investor
    62.15x
  • Retail Individual Investor
    15.02x
  • Total
    82.00x

About Happy Forgings

Established on July 2, 1979, Happy Forgings specializes in designing and manufacturing heavy forgings and high-precision machined components. Happy Forgings primarily serves original equipment manufacturers (OEMs) engaged in the production of commercial vehicles, both domestically and internationally. In the non-automotive sector, the company extends its services to manufacturers of farm equipment and off-highway vehicles, as well as industrial equipment and machinery for sectors such as oil and gas, power generation, railways, and wind turbine industries. The company's diverse product range includes heavy forged and machined items like crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products, and valve bodies. These products cater to a varied customer base across different industries.;
Parent Organisation
Happy Forgings Limited
Founded
1979
Managing Director
Mr. Paritosh Kumar

Strengths & Risks

  • Happy Forgings has experienced an increase in revenue from the sale of machined products, rising from Rs. 399.202 crore in 2021 (constituting 72.88% of product sales revenue in that year) to Rs. 839.233 crore in 2023 (comprising 78.66% of product sales revenue in that fiscal year). This reflects a CAGR of 44.99%.
  • In terms of forging capacity, as of 2023, Happy Forgings holds the position as the fourth-largest engineering-led manufacturer in India, specializing in complex and safety-critical heavy forged and high-precision machined components.
  • The company has integrated manufacturing operations and in-house product and process design capabilities.
  • The company operates 3 manufacturing facilities, 2 located in Kanganwal, Ludhiana, Punjab, and one in Dugri, Ludhiana, Punjab.
  • The company serves customers in over 9 countries, including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the USA.
  • Happy Forgings company heavily relies on its top 10 customers. In 2023, 2022, and 2021, as well as in the six months ending September 30, 2023, and 2022, the company generated revenue of Rs. 838.481 crores, Rs. 641.899 crores, Rs. 463.406 crores, Rs. 461.083 crores, and Rs. 428.6119 crores from these top customers. The potential loss of any of these customers could significantly impact its business, financial health, operational results, and cash flows.
  • The company depends on a limited number of suppliers for its primary raw material, steel. There are no definitive supply agreements in place. Any disruptions in the supply of steel could negatively affect Happy Forgings' business, financial condition, and operational results.
  • Happy Forgings has incurred indebtedness. As of October 31, 2023, the company's outstanding borrowings amounted to Rs. 259.942 crore.
  • The company is exposed to counterparty credit risk, and any delays or non-receipt of payments may adversely impact its business, financial condition, cash flows, and operational results.
  • The availability and cost of steel significantly influence Happy Forgings' business and profitability. Disruptions in the timely and adequate supply of steel or volatility in steel prices may adversely affect the company's operations.
  • With exports to various countries, the company's revenue from customers outside India represented a notable percentage of total revenue. Adverse events affecting these countries could have a negative impact on the company's overall revenue.
  • The company has contingent liabilities, which if materialize, may adversely affect Happy Forgings' results of operations, cash flows, and financial condition.
  • The company derives a significant portion of its revenue from the sale of crankshafts, and any decline in sales resulting from a reduction in demand for crankshafts would adversely affect its business, financial condition, results of operations, and cash flows.
  • All three manufacturing facilities are situated in Ludhiana, Punjab. This positioning exposes the company's operations to potential risks stemming from local and regional factors.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular808 - 850₹2 Lakh
High Networth Individual808 - 850₹2 - 5 Lakh
For Happy Forgings IPO, eligible investors can apply as Regular.
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