IPO screener: Will listing of Happy Forgings shares bring smile to investors?

Shares of Happy Forgings will be listed at the bourses today. The company has fixed the issue price at ₹850, at the upper end of ₹808-850. Expectations are high on the company, as the IPO received strong responses from all category of investors.

Happy Forgings was subscribed 82.04 times overall, with the quota set aside for retail investors portion subscribing for 15.09 times, while that of non-institutions, generally referred to as high-networth individuals, was subscribed 62.17 times. Qualified institutions were the most aggressive, as the QIB portion was subscribed to a whopping 220.48 times.

Happy Forgings IPO comprised of a fresh issue worht ₹400 crore and an offer-for-sale worth ₹608.60 crore.

The company proposes to use the proceeds for the purchase of equipment, plant, and machinery, the prepayment of all or a portion of certain outstanding borrowings availed of by the company, and for general corporate purposes.

Ahead of the IPO opening, Happy Forgings had allotted about 35.60 lakh shares at ₹850 a share to 25 anchor investors, raising ₹303 crore.

Global investors such as Fidelity International, Neuberger Berman, Morgan Stanley, Janchor Partners, WhiteOak Capital, Eastbridge Capital and Kotak Offshore participated in the anchor book. As many as 14 mutual funds, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mahindra Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, DSP Mutual Fund, Edelweiss Mutual Fund, Canara Robeco Mutual Fund, Invesco Mutual Fund, Motilal Oswal Mutual Fund, Quant Mutual Fund and HSBC Mutual Fund, and long with insurance companies such as SBI Life Insurance, ICICI Prudential Life Insurance, HDFC Life Insurance and Birla Life Insurance also participated.

Incorporated in July 1979, Happy Forgings manufactures heavy forgings and high-precision machined components. HFL primarily serves domestic and global original equipment manufacturers of commercial vehicles in the automotive sector. In the non-automotive sector, it caters to manufacturers of farm equipment, off-highway vehicles, and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and the wind turbine industries.

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