Happy Forgings Limited secured ₹303 crore from anchor investors in anticipation of its forthcoming initial public offering, which is set to open for public subscription on Tuesday, December 19, 2023.
The company informed the stock exchanges that on Monday, December 18, 2023, it allocated 35,59,740 equity shares at ₹850 per share to 25 anchor investors. This fundraising occurred at the upper limit of the ₹808-850 price band.
Global investors, including Fidelity International, Neuberger Berman, Morgan Stanley, Janchor Partners, WhiteOak Capital, Eastbridge Capital, and Kotak Offshore, participated in the anchor book. Additionally, 14 mutual funds such as 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, along with insurance companies like SBI Life Insurance, ICICI Prudential Life Insurance, HDFC Life Insurance, and Birla Life Insurance, participated in the anchor book.
Of the total allocation of 35,59,740 equity shares to anchor investors, 58% of the total anchor book size, approximately ₹174 crore, was assigned to 14 domestic mutual funds. This allocation comprised 20,45,766 equity shares.
Happy Forgings Limited has demonstrated a track record of consistent revenues and high profitability. Revenues surged from ₹585 crore in FY21 to ₹1,197 crore in FY23, with a CAGR of 43%+. The profit after tax increased 2.4 times from ₹86 crore in FY21 to ₹209 crore in FY23, at a CAGR of 55%, reflecting margin expansion driven by growth in value-added machined products. For the half-year ending Sept’23, revenues and profit after tax stood at ₹673 crore and ₹119 crore, respectively. EBITDA and net profit margin expanded from 27% and 15% in FY21 to 29% and 18%, respectively, for the half-year ending Sept’23.
Motilal Oswal Alternates, via India Business Excellence Fund III (\”IBEF III\”), invested ₹200 crore in the company in FY19, acquiring an 11.76% equity ownership.
JM Financial Limited, Axis Capital Limited, Motilal Oswal Investment Advisors Limited, and Equirus Capital Private Limited are serving as the book running lead managers, and Link Intime India Private Limited is the registrar to the offer. The proposed listing of equity shares is on BSE and NSE.