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.
“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.
Here are key things to know about the IPO before its opening:
GMP: As per market observers, the IPO GMP (grey market premium) is ₹430 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.