December 21, 2023

New Delhi, India

Happy Forgings IPO Opens Robustly, Encouraged by Retail Appetite and Anchor Investor Confidence

Happy Forgings Ltd.’s initial public offering (IPO) kicked off with promising momentum on its debut day, fueled by healthy investor interest and positive market sentiment.

Strong Subscriptions Across Investor Categories:

• The IPO, priced between ₹808 and ₹850 per share, witnessed an overall oversubscription of 2.31 times on December 19.
• Retail investors displayed a keen interest, driving a 3.02 times subscription for their allocated portion, signalling strong demand for Happy Forgings shares.
• Non-institutional investors (NIIs) followed suit with a robust 3.58 times subscription, while Qualified Institutional Buyers (QIBs) participation saw a 1% booking.

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Key Details and Anchor Investor Support:

• The IPO aims to raise ₹1,008.59 crore, comprising a fresh issue of equity shares worth ₹400 crore and an offer for sale (OFS) of 71.59 lakh shares.
• Retail investors could participate with a minimum investment of ₹14,450 for a lot size of 17 shares.
• The tentative listing date on both BSE and NSE is December 27.
• Prior to the IPO opening, Happy Forgings garnered ₹303 crore from anchor investors, reflecting strong pre-IPO confidence. A total of 35,59,740 equity shares were allocated at ₹850 per share to 25 anchor investors.

Proceeds Allocation and Market Excitement:

• The company intends to utilize the net issue proceeds for acquiring equipment, plant and machinery, repaying existing loans, and addressing general corporate needs.
• The Grey Market Premium (GMP), an indicator of the stock’s premium in the informal market, currently stands at ₹415 per share, signifying a 48.82% premium to the upper end of the issue price range, further highlighting investor enthusiasm.
• JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book running lead managers, while Link Intime India Private Ltd serves as the IPO registrar.

With retail investors playing a leading role and a positive sentiment emanating from both the grey market and anchor investors, Happy Forgings IPO is poised for a potentially exciting journey in the market. Investors remain engaged and will closely monitor the subscription trend before the IPO concludes on December 21.

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