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Happy Forgings is launching an IPO featuring an Offer for Sale (OFS) of up to 7.15L shares and a Fresh Issue totalling Rs400 Cr. The IPO price band is set at Rs. 808 to Rs. 850 per share. Company is 4th largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India as of FY23 in terms of forgings capacity. The company supplies high precision and complex components according to customers specifications and has emerged as a leading player in the domestic crankshaft manufacturing industry with the second largest production capacity for commercial vehicle and high horsepower industrial crankshafts in India. Its automotive segment comprises products for commercial vehicles and nonautomotive segment includes farm equipment, off-highway vehicles, and industrials. Currently, the company's forging capacity stands at 107,000 metric tonnes per annum (MTPA) and machining capacity at 46,000 MTPA. Their press tonnage ranges from 2,500 to 14,000T, with plans for a 6,300T press line by FY24 and another 10,000T press by FY25. Maintaining consistent EBITDA margins between 27-28% from FY21-23. The company's business seems insulated from the impact of battery-powered Electric Vehicles (EVs) as these batteries are not equipped to power heavy-duty offhighway vehicles. Additionally, extensive customer and product approval processes contribute to the industry's challenges.

Objects of the issue

Offer for Sale: Since the Offer is an offer for sale, the Company will not receive any proceeds from the Offer.

Fresh Issue: The Net Proceeds are proposed to be utilized by the Company towards funding the following objects:

Overview:

The company stands as the fourth-largest engineering-led manufacturer in India for intricate and safety-critical heavy forged and highly precise machined components, based on the forgings capacity in Fiscal 2023. Its operations are vertically integrated, covering engineering, process design, testing, manufacturing, and supply of diverse components known for their margin-enhancing and value-adding qualities. It primarily serves both domestic and global original equipment manufacturers (OEMs) in the automotive sector. Additionally, in the non-automotive realm, the company extends its services to manufacturers of farm equipment, off-highway vehicles, and industrial equipment and machinery across various industries including oil and gas, power generation, railways, and wind turbines. With an extensive track record spanning over 40 years, the company has solidified its position as a key player in the domestic crankshaft manufacturing industry. It holds the distinction of possessing the second-largest production capacity for commercial vehicle and high-horsepower industrial crankshafts in India. The company's strategic shift from a forging-led business to a manufacturer of machined components is notably driven by its emphasis on producing value-added, margin-enhancing products

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