The company’s shares were trading at a premium of ₹235 in the grey market. Despite expectations of a 28% premium based on the upper price band of ₹850, the actual listing premium fell slightly below projections.
Happy Forgings witnessed a robust response from investors following its ₹1,009-crore initial public offering (IPO). The stock, which debuted on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), demonstrated strong market interest.
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On the NSE, Happy Forgings opened at ₹1,000, while on the BSE, it listed at a premium of 17.79%, reaching ₹1,001.25. Leading up to the listing, the company’s shares were trading at a premium of ₹235 in the grey market. Despite expectations of a 28% premium based on the upper price band of ₹850, the actual listing premium fell slightly below projections.
Investors closely monitored the grey market premium (GMP) as an indicator of the potential listing price. However, GMPs, being dynamic and subject to rapid changes, served as a guide rather than a definitive forecast.
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Financial analysts provided guidance to investors, suggesting a profit booking strategy on the listing day. They advised a cautious approach, recommending further investment decisions be based on the company’s quarterly performance in the near term.
The public issue, open for bidding from December 19 to December 21, garnered significant attention, subscribing 82.04 times during the three-day bidding process. Retail investors showed keen interest, with the retail category oversubscribed 15.09 times. High net-worth individuals exhibited strong confidence, subscribing 62.17 times their quota, while qualified institutional buyers (QIBs) showed exceptional interest by picking 220.48 times their reserved portion.
“The lower-than-expected listing raises concerns, but the decent gain and strong fundamentals offer a counterpoint. A careful evaluation of both sides is crucial before making any investment decisions. Given the uncertainty surrounding the listing, a cautious approach is recommended. Existing investors in the IPO may consider holding their shares with a stop loss at 900. However, investors who were looking for listing gains may exit their positions,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
