HFL is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin-accretive and value-additive components.
MUMBAI, Dec 16 (The CONNECT) – The Initial Public Offering of Happy Forgings Limited (HFL), an engineering-led manufacturer of complex and safety critical, heavy forged and high precision machined components in India will open on Tuesday, December 19, 2023 at a price band of ₹808 to ₹850 per Equity Share.
The public issue of Equity Shares comprises of a fresh issuance of Equity Shares aggregating up to Rs. 400 crore and an Offer for Sale (OFS) of up to 7,159,920 Equity Shares will close on Thursday, December 21, 2023.
HFL is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin-accretive and value-additive components. The Company has emerged as a leading player in the domestic crankshaft manufacturing industry with the second largest production capacity for commercial vehicle and high horse-power industrial crankshafts in India, according to Ricardo Report.
HFL primarily serves domestic and global original equipment manufacturers, manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, they cater to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.
The Company owns and operate three manufacturing facilities, of which two are located at Kanganwal in Ludhiana, Punjab and one is located at Dugri in Ludhiana, Punjab. The annual aggregate installed capacity for forging and machining stands at 120,000.00 MT and 47,200.00 MT as of September 30, 2023, respectively.
HFL’s focus on producing margin accretive value-added products has led to its transition from being a forging led business to a machined components manufacturer.  The Company manufactures a wide range of heavy forged and machined products which include crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products and valve bodies across industries for a diversified base of customers.
HFL’s revenue from operations increased by 39.12% to ₹11,965.30 million in Fiscal 2023 from ₹8,600.46 million in Fiscal 2022. Restated profit after tax increased from ₹1,422.89 million in Fiscal 2022 to ₹2,087.01 million in Fiscal 2023.
For the six months ended September 30, 2023, the revenue from operations stood at ₹6,729.00 million and restated profit for the period stood at ₹1,192.99 million.
JM Financial Limited, Axis Capital Limited, Equirus Capital Private limited and Motilal Oswal Investment Advisors Limited are book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.
