Happy Forgings IPO was subscribed 82.07 times on the final day of bidding on December 21 with bids for 68.62 crore shares against an issue size of 83.65 lakh shares.
Retail investors bought 15.09 times and high net-worth individuals picked 62.17 times the allotted quota, while qualified institutional buyers picked 220.48 times their reserved portion.
The Rs 1,009 crore public offer which closes today, comprises of fresh issues of 47 lakh shares worth Rs 400 crore and an offer for sale of 71.59 lakh shares worth Rs 608.59 crore. The price band for the issue had been fixed at Rs 808-850 per share.
Also read: Happy Forgings IPO subscribed over 7 times, retail portion booked 7 times on Day 2
Happy Forgings plans to utilise the net proceeds from the fresh issue for the acquisition of equipment, plant, and machinery, with a total cost of Rs 171.1 crore. Additionally, a portion of the funds, amounting to Rs 152.76 crore, will be allocated for repaying debts. The remaining funds will be earmarked for general corporate purposes.
The company recorded a 46.7 percent on-year growth in net profit at Rs 208.7 crore the year ended March FY23, with EBITDA (earnings before interest, tax, depreciation and amortisation) rising 47.7 percent to Rs 341 crore and margin expanding by 170 bps to 28.5 percent during the same period. The business at the topline front also remained strong, rising more than 39 percent to Rs 1,197 crore.
JM Financial Limited, Axis Capital Limited, Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers of the Happy Forgings IPO, while Link Intime India Private Ltd is the registrar for the issue.
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