Happy Forgings IPO fully subscribed on Day 1: Key things to know before investing

Happy Forgings IPO: The ₹1009-crore public issue will conclude on Wednesday.

Ludhiana-based Happy Forgings Limited will launch its initial public offering (IPO) on Tuesday. On Monday, a day ahead of the IPO's opening, the company, a manufacturer of heavy forgings and high-precision machined components, made ₹302.6 crore from institutional investors through its anchor book that was launched on the day.

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“Allocation of 35,59,740 equity shares was finalised for anchor investors at ₹850 per share. Of these, 20,45,766 equity shares were allocated to 14 domestic mutual funds through a total of 23 schemes,” Happy Forging noted in its filing to the exchanges, according to Moneycontrol.

Further, the issue was fully subscribed on the first day of the IPO on December 19. On Day 1 of the issue, Happy Forgings IPO was subscribed 1.2 times, with total bids for one crore shares against an issue size of 83.65 lakh shares

Here are key things to know about the IPO before its opening:

GMP: As per market observers, the IPO GMP (grey market premium) is ₹411 per share on the first day of bidding, reported Mint.

Price band: The price band is fixed at ₹808 to ₹850 per share.

Offer details: The total issue size is ₹1008.59 crore, which comprises a fresh issue of equity shares (worth ₹400 crore) and an offer-for-sale (OFS) totaling 71.59 lakh shares.

Lot size: One lot size will have 17 company shares and in multiples of 17 thereafter. To invest, retail investors need a minimum amount of ₹14,450 (17*850).

Important dates: December 19 (opening), December 21 (closing), December 22 (allotment; expected), and December 27 (stock exchange listing; tentative).

Share allocation: 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors.

Lead managers and registrar: Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors (lead managers); Link Intime India Private Limited (registrar).

Objectives: Happy Forgings will use the net proceeds towards the purchase of equipment, plant and machinery; prepayment of all or a portion of certain outstanding borrowings, and for general corporate purposes.