Source : PTI | Auto components maker Happy Forgings Ltd has filed preliminary papers with capital markets regulator Sebi to raise INR 1,200-1,300 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth INR 500 crore and an offer for sale (OFS) of up to 80.55 lakh shares by a promoter and a selling shareholder, according to the draft red herring prospectus (DRHP) filed on Monday.
As part of the OFS, 53.7 lakh equity shares will be offloaded by Paritosh Kumar Garg (HUF) and up to 26.85 lakh equity shares by India Business Excellence Fund – III. Also, the company may consider a pre-IPO placement of shares aggregating up to INR 100 crore. If such placement is completed, the fresh issue size will be reduced.
According to market sources, the IPO size is expected to be INR 1,200-1,300 crore.
Going by the draft papers, proceeds from the fresh issue to the tune of INR 213.6 crore will be utilized towards the purchase of equipment, plant, and machinery, up to INR 190 crore for payment of debt and a portion of funds will also be used for general corporate purposes.
Ludhiana-based auto components maker employs a vertically integrated approach encompassing engineering, process design, testing, manufacturing, and supply of diverse components.
Its primary clientele includes both domestic and global OEMs in the commercial vehicle sector, while also serving non-automotive markets like farm equipment, off-highway vehicles, and industrial machinery spanning oil and gas, power generation, railways, and wind turbine industries.
Among its notable customers are Ashok Leyland, JCB India, Mahindra & Mahindra, SML ISUZU, and Tata Cummins.
The company has operations in nine countries, namely Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the US.
The company’s consolidated revenue from operations rose 39.12% to INR 1,196.53 crore in fiscal year 2023 from INR 860.05 crore in the preceding fiscal. Net profit jumped 46.67% to INR 208.70 crore from INR 142.29 crore in fiscal 2022.
JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue. Equity shares are proposed to be listed on BSE and NSE.
