About the Company:
Established in July 1979, Happy Forgings Limited is a leading Indian manufacturer specializing in heavy forgings and high-precision machined components. With a strong four-decade track record, the company excels in designing, testing, and producing a diverse range of products for various industries.
Products and Clients: Happy Forgings offers a comprehensive product line, including crankshafts, front axle carriers, steering knuckles, and more. Its clientele includes industry leaders like AAM India Manufacturing Corporation, Ashok Leyland, and Mahindra & Mahindra. The company's global presence extends to countries such as Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States.
Manufacturing Facilities: The company operates three state-of-the-art facilities in Kanganwal and Dugri, Ludhiana, Punjab, ensuring the production of high-quality components meeting industry standards.
IPO Objectives:
- Purchase of equipment, plant and machinery.
- Prepayment of all or a portion of certain outstanding borrowings availed by the Company and
- General corporate purposes.
Promoters and Shareholding:
Promoters include Paritosh Kumar, Ashish Garg, Megha Garg, Ayush Capital & Financial Services Private Limited, Garg Family Trust, Paritosh Kumar Garg (HUF), and Ashish Garg & Sons (HUF). The shareholding pre-issue stands at 88.24%.
Summary of Financial Information:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 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 |
| Net Worth | 1,103.33 | 988.31 | 787.62 | 645.16 |
| Reserves and Surplus | 1,088.25 | 978.66 | 769.72 | 636.21 |
| Total Borrowing | 258.97 | 218.52 | 240.35 | 153.47 |
Key Performance Indicators:
| KPI | Values |
| P/E (x) | 36.45 |
| ROE | 21.12% |
| ROCE | 24.24% |
| EPS (Rs) | 23.32 |
| RoNW | 21.12% |
Comparison with Peers:
| Company Name | P/B (x) | P/E (x) | ROE (%) |
| Happy Forgings Ltd | 32 | 6.89 | 23.5 |
| Bharat Forge Ltd | 83 | 7.95 | 7.66 |
| Craftsman Automation Ltd | 38 | 7.39 | 19.98 |
| Ramkrishna Forgings Ltd | 47 | 5.4 | 21.01 |
| Sona BLW Precision Forgings Ltd | 70 | 13.33 | 18.47 |
Key IPO Details:
| IPO Date | December 19 to December 21, 2023 |
| Listing Date | December 27, 2023 |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 808 to Rs. 850 per share |
| Lot Size | 17 Shares |
| Total Issue Size | Up to Rs. 1008 Cr |
| Fresh Issue | Up to Rs. 400 Cr |
| Offer for Sale | 7,159,920 shares of Rs. 2 (Up to Rs. 608.59 Cr) |
| GMP | Rs 410 (48.24%) [For informational purposes] |
Note: For additional information & risk factors please refer to the Red Herring Prospectus
Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
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