Auto components maker Happy Forgings Ltd on Thursday fixed a price band of Rs 808 to 850 per share for its Rs 1,008 crore-Initial Public Offering (IPO).
The maiden public issue will open for subscription from December 19-21, and the anchor book will be opened for a day on December 18.
The IPO comprises a fresh issue of equity shares worth Rs 400 crore and an Offer For Sale (OFS) of up to 71.6 lakh shares by a promoter and a selling shareholder.
Paritosh Kumar Garg (HUF) and India Business Excellence Fund III are the selling shareholders in the OFS.
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Proceeds from the fresh issue will be utilised towards the purchase of equipment, plants, and machinery, the payment of debt and a portion of the funds will also be used for general corporate purposes.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional buyers.
Investors can bid for a minimum of 17 equity shares and in multiples of 17 equity shares thereafter.
At the lower and upper end of the price band, the IPO is expected to mop up Rs 978.52 crore and Rs 1,008.6 crore, respectively.
The Ludhiana-based auto component maker's primary clientele includes domestic and global Original Equipment Manufacturers (OEMs) in the commercial vehicle sector. It also serves non-automotive markets like farm equipment, off-highway vehicles, and industrial machinery.
Ashok Leyland Ltd, JCB India Ltd, Mahindra & Mahindra Ltd, SML ISUZU Limited, and Tata Cummins are among its customers.
The company has operations in nine countries -- Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the UK, and the USA.
The company's consolidated revenue from operations rose 39.12 per cent to Rs 1,196.53 crore for the fiscal year 2023 from Rs 860.05 crore in the preceding fiscal.
Net profit jumped by 46.67 per cent to Rs 208.70 crore in fiscal 2023 from Rs 142.29 crore in fiscal 2022.
JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running lead managers.
The equity shares are proposed to be listed on the BSE and NSE.
