Happy Forgings IPO: Latest GMP hints at stellar listing tomorrow
Happy Forgings Limited is set to make a strong debut on the stock exchanges on December 27. The initial public offering (IPO) was subscribed 82 times on the final day of bidding on December 21. Retail investors purchased 15.09 times and high net-worth individuals subscribed 62.17 times the allotted quota, while qualified institutional buyers (QIBs) subscribed to 220.48 times their reserved portion. Let's see what Happy Forging IPO's grey market premium (GMP) suggests before tomorrow's share listing.
Grey market premium signals listing gains of over 27%
At the time of writing, GMP for Happy Forgings was at Rs. 235 per share. Taking into account the GMP and upper-end issue price of Rs. 850, the estimated listing price is Rs. 1,085 apiece, which is a premium of nearly 28% over the issue. "We expect the stock to list at a premium of around 49% over its issue price," said Dhruv Mudaraddi, research analyst at StoxBox. Analysts at Reliance Securities have also given a subscribe rating.
How the company plans to utilize net IPO proceeds?
The Rs. 1,009-crore IPO comprises a fresh issue of Rs. 400 crore shares and an offer-for-sale of Rs. 609 crore. Happy Forgings intends to use the net proceeds from the fresh issue for acquiring equipment, plant, and machinery worth Rs. 171.1 crore, repaying debts amounting to Rs. 152.76 crore, and for general corporate purposes. JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO.
