Happy Forgings Limited, a company with a 44-year legacy, is gearing up for its upcoming IPO, and the grey market is buzzing with excitement. Even before the IPO price announcement, a premium of ₹25 was declared, and today, as the IPO price is revealed, the premium has surged to ₹460 from the initial ₹25. This means investors subscribing to this IPO can potentially expect a return of 54% in just 9 days.
About Happy Forgings Limited
Founded by Paritosh Kumar Garg in 1979, Happy Forgings Limited continues to thrive even after 44 years, with Mr. Paritosh Kumar Garg still serving as the Chairman. The role of Managing Director is capably handled by his son, Ashish Garg. The company specializes in producing crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products, and valve bodies. Some of its major customers include AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, JCB India Limited, Mahindra & Mahindra Limited, and others.
The company proudly claims its presence in markets beyond India, including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America. With a robust product portfolio and extensive experience, Happy Forgings Limited stands tall among India’s leading companies in the production of the mentioned components.
Happy Forgings Limited Financial Information
– Total assets have increased from ₹1129 crores to ₹1326 crores.
– Revenue has grown from ₹866 crores to ₹1202 crores.
– Net worth has surged from ₹788 crores to ₹988 crores.
– Reserves and Surplus have risen from ₹770 crores to ₹978 crores.
– Bank loans and other debts have decreased from ₹240 crores to ₹218 crores.
– Profit after tax has increased from ₹142 crores to ₹208 crores.
– Over the past year, the company has witnessed approximately 39% growth in revenue and 46% growth in profit after tax.
These financial figures are as of the financial year closing on March 31, 2022, and March 31, 2023.
Why is Happy Forgings Limited entering the stock market after 44 years?
Mr. Paritosh Kumar Garg, the founder, and Chairman has been leading the company for 44 years. Most individuals from this generation prefer holding 100% of the company’s shares. Ashish Garg, the Managing Director, has steered the company with strength, and with approximately 12% of the shareholding in the market, the company is now seeking to raise an investment of ₹500 crores from investors in the stock market.
Happy Forgings IPO Timeline and Details
– IPO opening date: December 19
– IPO closing date: December 21
– Allotment date: December 22
– Refunds: December 26
– Share credit in Demat accounts: December 26
– Listing date on BSE and NSE: December 27, 2023
– Face Value: ₹2 per share
– Price Band: ₹808 to ₹850 per share
– Lot Size: 17 Shares
– Minimum investment: ₹14,450
– Maximum investment: ₹187,850
Happy Forgings IPO GMP Trend
The grey market has warmly welcomed the company. Before the IPO price announcement on December 13, a premium of ₹25 was declared. Following this, from December 4 to December 12, market experts reviewed the company. On December 14, the IPO price was officially announced at ₹850, with a premium of ₹460 in the grey market. If we consider today’s premium as a benchmark, investors subscribing to the IPO on December 19 can potentially gain around 54% by the listing date on December 27. The estimated listing price in the grey market is ₹1310.
Disclaimer:
Before making any investment decisions, please consult your financial advisor and always remember that when you invest in the stock market, all risks associated are solely yours.