Ludhiana-based Happy Forgings on Wednesday listed at a premium of nearly 18 per cent against the issue price of Rs 850 per share.
The scrips of the company, which manufactures heavy forged and high precision machined components for automotive and industrial sectors, ended at Rs 1,029.80 per share on the Bombay Stock Exchange, up 21.15 per cent over the issue price and 2.85 per cent over the opening price in its debut trade.
The bumper listing comes on the back of a strong investor interest in the company’s Rs 1,009-crore public issue, consisting of a fresh issue of Rs 400 crore and offer for sale of Rs 609 crore.
The IPO was subscribed 82 times on the final day of bidding on December 21. Retail investors bought 15.09 times, while qualified institutional buyers subscribed over 200 times their reserved position on the last date of the issue.
Happy Forgings plans to utilise Rs 171.1 crore from the net proceeds of the fresh issue for acquisition of equipment, plant and machinery. A portion of the funds, amounting to Rs 152.76 crore has been allocated for repaying debt, while the remaining amount has been earmarked for general corporate purposes.
The company has seen its standalone revenue from operations increase from Rs 584.9 crore in FY21 to Rs 1,196.5 crore in FY23, while profits have increased from Rs 86.4 crore to Rs 208.7 crore during the same period.
