Happy Forgings IPO: Institutional investors pick Rs 302.6 crore worth of shares via anchor book

Happy Forgings IPO opens on December 19

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Happy Forgings, the precision machined components manufacturing company, mopped up Rs 302.6 crore from institutional investors through its anchor book launched on December 18.

"... has finalised allocation of 35,59,740 equity shares to anchor investors at a price of Rs 850 per share," the Punjab-based company said in its filing to exchanges.

Marquee names that participated in the anchor book of the company were Morgan Stanley, Ashoka Whiteoak ICAV, Optimix Wholesale Global Emerging Markets Share Trust, Janchor Partners, and East Bridge Capital Master Fund.

SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Fidelity Funds, Nippon Life India, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Axis Mutual Fund, DSP Mutual Fund, Edelweiss Trusteeship, Invesco India, HSBC Mutual Fund, Motilal Oswal MF and Canara Robeco Mutual Fund also invested in the firm.

"Out of the total allocation of 35,59,740 equity shares to the anchor investors, 20,45,766 equity shares were allocated to 14 domestic mutual funds through a total of 23 schemes," Happy Forgings said.

Also read: Happy Forgings IPO: 10 things to know before you buy into Rs 1,009-crore issue

Insurance companies also showed good interest in the firm, including HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance Company and Aditya Birla Sun Life Insurance Company through investment in the anchor book.

Happy Forgings will be opening its Rs 1,008.6-crore initial public offering for subscription on December 19, with a price band at Rs 808-850 per share.

The IPO is a mix of a fresh issue of Rs 400 crore worth of shares and an offer-for-sale (OFS) of 71.6 lakh equity shares by the existing shareholders.

Also read: Mufti jeans-owner Credo Brands Marketing raises Rs 165 cr via anchor book ahead of IPO

Promoter Paritosh Kumar Garg (HUF), and India Business Excellence Fund – III are the selling shareholders in the OFS.

Promoters currently own 88.24 percent stake in the company and the rest of the shareholding is held by investor India Business Excellence Fund – III.

Happy Forgings, which caters to domestic and global original equipment manufacturers in several sectors such as automotive, off-highway vehicles, oil and gas, power generation, railways and wind turbine industries, intends to utilise the net fresh issue proceeds mainly for the purchase of equipment, plant and machinery at Rs 171.1 crore and repaying debts amounting to Rs 152.76 crore, while keeping the balance amount for general corporate purposes.

Also read: Negen Capital, PGIM India, BofA Securities Europe pick Rs 21 cr shares in RBZ Jewellers via anchor book

The book-running lead managers to the issue are JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors.