Happy Forgings, the precision machined products manufacturer, plans to raise Rs 1,008.59 crore from its maiden public issue next week. The price band for the offer has been fixed at Rs 808-850 per share.
The three-day subscription period for the IPO will start from December 19 and continue till 21st. Institutional investors can participate in the anchor book of the issue for a day on December 18.
The initial public offering is a mix of fresh shares worth Rs 400 crore and an offer-for-sale (OFS) of 71.6 lakh equity shares worth Rs 608.59 crore (at the upper price band) by the existing shareholders.
Promoter Paritosh Kumar Garg (HUF) and investor India Business Excellence Fund – III are the selling shareholders in the OFS. The promoter shareholding in the company stands at 88.24 percent and the remaining stake is owned by investor India Business Excellence Fund – III.
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Of the net fresh issue proceeds, the Punjab-based company will spend Rs 171.1 crore for purchase of equipment, plant and machinery and Rs 152.76 crore for repaying debts. And the balance funds will keep for its general corporate purposes.
The minimum lot size is of 17 equity shares and in multiples of 17 shares thereafter. Retail investors can invest a minimum of Rs 14,450 for 17 shares and the maximum investment by them will be Rs 1,87,850 for 221 shares.
Happy Forgings, the manufacturer of heavy forged and machined products, including crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products and valve bodies across industries, earned nearly 44 percent of business from the automotive segment, and the rest 56 percent is contributed by non-automotive sectors.
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JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the merchant bankers to the issue.
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