Happy Forgings makes a happy listing on the exchange; debuts at 18% premium
Shares of Ludhiana-based Auto Component Maker Happy Forgings made its debut on the exchange at a premium of 17.79%.
The scrip listed Rs 1000 per share on NSE and Rs 1001.25 per share on BSE, at a premium of 17.65% and 17.79% respectively. The company's share price closed at Rs 1029.80 per share on the BSE, a 21.15% premium, and at Rs 1030.10 per share on the NSE, a 21.19% premium.
Mr. Ashish Kumar Garg, MD – Happy Forgings Limited, said " With immense gratitude, we extend our heartfelt thanks to each shareholder and investor of Happy Forgings as we take this significant leap of being listed on the exchange. Your steadfast support and trust have been pivotal in our journey of growth and progress. This milestone stands as a testament to the collective dedication and perseverance of our team. As we embrace this new phase, we reiterate our commitment to excellence, innovation, and sustained value creation. Your confidence in us propels us forward, and we are deeply appreciative of your continued belief in our vision."
The Market Capitalization of the Company at today’s closing price stood at Rs. 9701.22 Crore as per BSE and Rs. 9704.04 Crore as per NSE.
The Initial Public Offering of Happy Forgings Limited was subscribed 82.04 times. Retail Portion was subscribed 15.09 times, Non-Institutional Investors Portion with 62.17 times, whereas Qualified Institutional Buyer Portion subscribed 220.48 times.
Happy Forgings Limited is the fourth largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India (as of Fiscal 2023 in terms of forgings capacity). The company caters to large domestic and global original equipment manufacturers (“OEMs”) in automotive and non-automotive segments including commercial vehicles, farm equipment, off-highway vehicles, industrial equipment & machinery for oil and gas, power generation, railways and wind turbine industries.
It has a diverse product portfolio comprising crankshafts, front axle, components, differential cases, transmission parts etc catering to multiple industries and to a wide base of sticky and long-term customers in India and globally (exports contribute 20.75% of the revenue for half year ended Sept’23).
The company has established a track record of consistent revenues and high profitability. Revenues doubled from ₹585 crore in FY21 to ₹1,197 crore in FY23 at a CAGR of 43%+ and profit after tax grew 2.4x from ₹86 crore in FY21 to ₹209 crore in FY23 at a CAGR of 55%+ demonstrating margin expansion led by growth in value added machined products. Revenues and profit after tax for half year ended Sept’23 was ₹673 crore and ₹119 crore respectively. EBITDA and net profit margin have expanded from 27% and 15% in FY21 to 29% and 18% for half year ended Sept’23 respectively.
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