Happy Forgings sets IPO price band at Rs 808-850; eyes 1,008 crore issue

Happy Forgings Ltd is looking for an initial public offering worth up to Rs 1,008.6 crore as the Ludhiana-based auto component maker today announced the price band of Rs 808 - Rs 850 for the issue. 

The offer comprises of fresh issue of equity shares worth Rs 400 crore and an offer for sale of 71,59,920 shares. The shares will have a face value of Rs 2 apiece. 

Promoter Paritosh Garg will offload up to 49,22,445 shares in the offer for sale,  while investor India Business Excellence Fund III will sell 22,37,475 shares. The offer of sale would be worth up to Rs 608.59 crore at the upper end of the price band. 

The company plans to list its shares on both the National Stock Exchange of India Ltd and BSE Ltd. The offer opens for public subscription on December 19 and will close on December 21 with listing planned on December 27. 

Happy Forgings supplies components such as crankshafts, front axle beams, steering knuckles, differential cases and suspension products. Apart from commercial vehicles, Happy Forgings also supplies components to sectors including railway, oil and gas, and power generation.  

Ashok Leyland, VE Commercial Vehicles, SML Isuzu, Sonalika, Swaraj Engines, Dana, JCB, Liebherr are some of the company’s customers. 

Happy Forgings said it will use Rs 1.71 billion from the net proceeds of the fresh issue to the purchase of equipment, plant and machinery, while the remaining Rs 1.53 billion for the repayment of debt. 

JM Financial, Axis Capital, Equirus Capital and Motilal Oswal Investment Advisors are the lead booking running managers for the issue.