Happy Forgings Closes At 21.18% Premium Over IPO Price
Shares of the company debuted at a premium of 17.79% and 17.65% on the two exchanges, respectively.
Shares of Happy Forgings Ltd. closed on the BSE at Rs 1,029.80 apiece, up 2.85% from the indicative price of Rs 1,001.25 per share. This was at a premium of 21.15% over its issue price of Rs 850 apiece.
On the National Stock Exchange, the stock ended the day at at Rs 1,030.10 apiece, up 3.01% from the indicative price of Rs 1,000 per share. The scrip ended at a premium of 21.18% from the issue price.
Shares of the company debuted at a premium of 17.79% and 17.65% on the two exchanges, respectively.
The proceeds from the maiden share sale will be utilised to reduce the company's debt, with 60-70% going into business, Ashish Garg, managing director at Happy Forgings told NDTV Profit.
"We have been consistently investing in capex. Despite these large capex, the company's debt-equity [ratio] is at 0.2, which shows that we are able to deploy these funds from our own cash. Going forward, as a strategy for the funds we are raising, we plan to reduce Rs 150-170 crore of out debt and put the balance in capex," he said.
Garg said the company is aiming to go debt free in the next six months on the back of "very storng cash accruals".
In future, Happy Forgings has full flexibility to can raise funds anytime it wants, if the need arises, he said.
The Rs 1,008.6-crore initial public offering was subscribed 82.04 times on its third and final day. The bids were led by institutional investors (220.48 times), followed by non-institutional investors (62.17 times), and retail investors (15.09 times).
The auto component maker's IPO was a mix of fresh issue of Rs 400 crore and an offer for sale of Rs 608.6 crore. The company had a price band in the range of Rs 808 to Rs 850 apiece.
Happy Forgings mobilised Rs 303 crore from anchor investors, ahead of its IPO.
Proceeds from the fresh issue will be utilised towards purchase of equipment, plants, and machinery; payment of debt; and a portion of the funds will also be used for general corporate purposes.
Business
Happy Forgings is the fourth-largest engineering-led manufacturer of complex and safety-critical, heavy-forged and high-precision machined components in India in terms of forgings capacity. The company primarily caters to domestic and global original equipment manufacturers.
It also serves a wide range of industries in the non-automotive sector—farm equipment, off-highway vehicles and industrial machinery for oil and gas, power generation, railways and wind turbine sectors.
