Happy Forgings shares to make D-Street debut on Wednesday. Here's what GMP indicates

The shares of Happy Forgings will list on the exchanges on Wednesday. Ahead of the listing, the company's shares are commanding a premium of Rs 282 in the unlisted market.

Considering the upper price band of Rs 405, the stock is likely to list with a premium of 70%.

However, it is important to note that grey market premia are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

The issue received a strong subscription of 82 times at close.

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The massive subscription of the IPO was driven by institutional investors. The categories reserved for retail investors and NIIs were subscribed 15 times and 62 times, respectively. The QIB portion was booked 220 times.

Happy Forging is an engineering-led manufacturer of safety-critical, heavy forged and high-precision machined components.

The company caters to domestic and global original equipment manufacturers, manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, its clients are manufacturers of farm equipment, off-highway vehicles, and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways, and wind turbine industries.

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It makes a wide range of forged and machined products such as crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, planetary carriers, suspension brackets, and valve bodies across industries for a diversified base of customers.

Net proceeds from the issue will be utilised for the purchase of equipment, plant, and machinery, prepayment of debt, and other general corporate purposes.

For the six months ended September 2023, the company clocked revenues of Rs 600 crore, while profit stood at Rs 116 crore. In FY23, revenues rose 39% to Rs 1,196 crore and profit jumped 47% to Rs 209 crore.

During FY21-23, its revenue, EBITDA, and PAT clocked a CAGR of 43%, 47%, and 55%, respectively. Meanwhile, RoCE improved from 14% in FY21 to 22% in FY23.

JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital were the book-running lead managers to the issue.

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