Initial public offerings (IPOs) of several companies will open for subscription in the coming week. Among these, is the public issue of Happy Forgings; the company’s IPO will open on December 19 and close on December 21.
Ahead of the IPO’s opening, here are key things you must know about it:
Important dates: December 19 (opening), December 21 (closing), December 22 (basis of allotment of shares to be finalised), December 26 (refunds to be initiated; shares to be credited to the allottees’ demat account), and December 27 (listing on stock exchanges)
Price Band: The offering’s price band has been fixed at ₹808-850 per equity share at ₹2 face value.
Offer details: Happy Forgings intends to raise ₹1009-crore through the issue, which is a combination of fresh issue of ₹400 crore worth of shares, and an offer for sale (OFS) of 71.6 lakh shares by the existing shareholders.
Paritosh Kumar Garg, the promoter, is offering 49.2 lakh equity shares, and India Business Excellence Fund-III, the investor, is offering the remaining 22.4 lakh shares. Their respective stake in the firm is 88.24% and 11.76%.
Lot size: Investors can bid for a minimum of 17 equity shares and in multiples of 17 after that. The minimum investment by a retail investor must, therefore, be ₹13,736 (17*lower price band limit of ₹808).
Share reservation: 50% for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).
Issue objectives: With the net proceeds, Happy Forgings plans to finance the following goals – buying machinery, plant, and equipment; paying off all or a portion of some outstanding loans that the company has taken out; and general corporate purposes.
Company profile: Established in July 1979, Happy Forgings is a homegrown manufacturer with expertise in designing, manufacturing heavy forgings, and high-precision machine components. On its website, the firm says it is the ‘fourth-largest engineering-led manufacturer of complex and safety critical, heavy forged and high precision machined components in India.’