Happy Forgings Limited

About Happy Forgings Limited  Incorporated in 1979, Happy Forgings Limited is India’s fourth largest engineering-led manufacturer of complex and high-precision machined components. Its product portfolio includes crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, camshafts, piston pins, pinion shafts, suspension products and valve bodies.  These products are used in commercial vehicles, farm equipment, off-highway vehicles, wind turbines, railways, power generation and the oil and gas industry. It supplies products to each of the top five OEMs (Original Equipment Manufacturers) in the medium and heavy commercial vehicle industry and four of the top five OEMs in the farm equipment industry in India.  Some of its customers include AAM India Manufacturing Corporation, Ashok Leyland, Bonfiglioli Transmissions, Dana India, IBCC Industries, Mahindra & Mahindra and more. It also serves customers outside India in countries such as Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom and the United States of America as of 30 September 2023.  It owns and operates three manufacturing facilities in Ludhiana, Punjab. It is the second company in India to have a 14,000 tonne forging press. It has automated specific processes by using robots, and has ten robots installed across its manufacturing facilities as of 30 September 2023.  The company has seen a CAGR rise of 26% in its revenue from operations and 34% in its profit between FY21 and FY23. Moreover, the Indian forging market is expected to grow at a CAGR of 5% by FY29, which could benefit the company.  And now, Happy Forgings Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be used to prepay borrowings, purchase equipment, plant and machinery; and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Happy Forgings Limited IPO:     Company Name  Happy Forgings Limited   Company Type  Private    Company Established On  1979   Happy Forgings Limited IPO Opening Date  19th December 2023    Happy Forgings Limited IPO Closing Date  21st December 2023   Happy Forgings Limited IPO Allotment Status  22nd December 2023    Credit of Shares to the Demat Account  26th December 2023   Happy Forgings Limited IPO Listing Date  27th December 2023    Happy Forgings Limited IPO Face Value  ₹2per share   Happy Forgings Limited IPO Lot Size  17 shares    Happy Forgings Limited IPO Issue Size  Approx ₹1,009 crore   Happy Forgings Limited IPO to be Listed on  BSE, NSE    Happy Forgings Limited IPO Price band  ₹808 – ₹850 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 584 crore  ₹ 860 crore  ₹ 1,196 crore  ₹ 672 crore    Net Profit  ₹ 86.4 crore  ₹ 142 crore  ₹ 208 crore  ₹ 119 crore              Here’s a quick look at Happy Forgings Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Fourth largest engineering led manufacturer of complex and safety-critical, and high precision machined components in India with an experience of 40 years.  Only the second company in India to have a 14,000 tonne forging press and among four companies in India that possess a 8,000 tonne forging press as of 31 March 2023.  In FY23, the company derived 43.6% of its revenue from the automotive sector, whereas the remaining revenue came from the non-automotive sector.  Long standing customer relationships, as 75% of its revenue from sales came from customers with whom the company has relations for more than 10 years.  Diversified customer base as it served 66 customers in FY23 spanning industries such as automotive, oil and gas, power generation, railways and wind turbine.  EV (Electric Vehicle) penetration is expected to have limited impact on its operations as heavy-duty vehicles will continue to use traditional internal combustion engines (ICE) or alternative engine technologies that require crankshafts.  Track record of healthy financial performance with an EBITDA margin of 27%, 26% and 28% in FY21, FY22 and FY23 respectively.   Risks and threats   Business largely depends on its top 10 customers, which accounted for 79%, 74% and 70% of its revenue from operations in FY21, FY22 and FY23 respectively.  It faces competition from Bharat Forge, Craftsman Automation, RK Forging, Thysenkrupp, American Axle & Manufacturing, Tianrun Crankshaft and Guilin FUDA.  Has incurred indebtedness as its total outstanding borrowings amassed to ₹259 crore as of 31 October 2023.  Has significant power and fuel requirements with a spending of ₹75 crore in FY23.  Capital-intensive business with a capital expenditure of ₹174 crore in FY23. Unable to get additional financing could impact business operations.  Derives a significant portion of its revenue from the sale of crankshafts, making up 45% of the total revenue from sale of products in FY23.            Happy Forgings Limited IPO details  |Happy Forgings Limited IPO date  According to the offer document filed by the company with the SEBI, the Happy Forgings IPO’s opening date – in other words, the Happy Forgings IPO launch date – will be 19th December 2023. The Happy Forgings IPO closing date is 21st December 2023. After this, investors will be updated about the allotment status on 22nd December 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 26th December 2023. The Happy Forgings IPO listing date is 27th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Happy Forgings Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Happy Forgings IPO price band has been set between ₹808 and ₹850 per share. Interested investors can choose a price within this band to apply for the IPO.  The Happy Forgings IPO listing price will be determined on 27th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges  |Happy Forgings Limited IPO Lot size  The Happy Forgings IPO details have been declared. The Happy Forgings IPO lot size is set at 17 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Happy Forgings IPO issue size is approx ₹1,009 crore.           How to pre-apply for the Happy Forgings Limited IPO?  You can pre-apply for the Happy Forgings Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Happy Forgings Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Happy Forgings Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Happy Forgings Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Happy Forgings Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Happy Forgings Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Happy Forgings LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Happy Forgings Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Happy Forgings Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Happy Forgings Limited IPO  To apply for the Happy Forgings Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Happy Forgings Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Happy Forgings Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.