As Happy Forgings’ initial public offering (IPO) gears up for its stock market debut on December 27, the Grey Market Premium (GMP) indicates a positive listing for the company.
The IPO of the heavy forgings and high-precision machined components manufacturer witnessed strong demand during its subscription period from December 19 to 21. It was oversubscribed 82.63 times, reflecting widespread interest across all investor categories.
Happy Forgings IPO GMP
As of today, the Grey Market Premium for Happy Forgings stands at Rs 230 per share. This suggests that in the unofficial grey market, Happy Forgings shares are trading at a premium of Rs 230 above the issue price.
Market observers interpret this GMP as a positive indicator, projecting a strong listing for Happy Forgings shares. However, the GMP has witnessed a significant decline of Rs 52 in a day.
Estimated listing price
Considering the Happy Forgings IPO GMP today, the estimated listing price is pegged at Rs 1080 apiece. This marks a premium of 27.06 per cent over the IPO price of Rs 850 per share, indicating a decent market reception.
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Subscription status
During the subscription period, Happy Forgings IPO drew decent participation from various investor categories. Retail investors showed significant interest, subscribing 15.40 times, while Non-Institutional Investors (NIIs) demonstrated a strong demand, oversubscribing by 63.45 times.
The Qualified Institutional Buyers’ (QIB) segment also exhibited robust demand, with a subscription rate of 214.65 times.
Details of Happy Forgings IPO
The IPO size of Happy Forgings amounted to Rs 1,008.59 crore, comprising a fresh issue of 47 lakh shares worth Rs 400 crore and an Offer for Sale (OFS) of 72 lakh shares valued at Rs 608.59 crore.
With a price band of Rs 808 to Rs 850 per share, the IPO is aimed at infusing capital into the company for equipment purchase, plant and machinery investment, prepayment of certain outstanding borrowings, and general corporate purposes.
Key players in the IPO
JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are spearheading the IPO as the book running lead managers, while Link Intime India Private Ltd takes on the role of the IPO registrar.
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Fund utilisation
Happy Forgings outlines its plan to utilise the IPO proceeds for strategic purposes, including the acquisition of equipment and machinery, prepayment of specific outstanding borrowings, and general corporate needs.
