Happy Forgings IPO: What GMP, subscription status signal as bidding ends today. Should you apply?
Happy Forgings IPO: The initial public offering (IPO) of Happy Forgings Limited opened for subscription on 19th December 2023 and it will remain open till 21st December 2023. This means Happy Forgings IPO subscription will end today evening or in other words, investors have just one day in hand to apply for the Happy Forgings IPO. In two days of bidding, Happy Forgings IPO subscription status informs that the public issue has received strong response from investors.
In grey market, shares of Happy Forgings Limited are still looking strong. According to stock market observers, Happy Forgings shares are trading at a premium of ₹445 in grey market today.
Market observers said that Happy Forgings IPO grey market premium (GMP) today is ₹445, which is almost unchanged from yesterday’s GMP of ₹444. Observers said that Happy Forgings IPO GMP remained steady despite heavy sell off in secondary market on Wednesday, which is praiseworthy. They said that steady GMP signals strong conviction of investors in regard to the Happy Forgings IPO.
However, stock market experts maintained that GMP is not an ideal indicator of positive or negative conviction of investors as grey market is non regulated and completely speculative. They went on to add that one should scan financials of the company as it has direct connect with the fundamentals of the company.
After two days of bidding, the public issue has been subscribed 7.47 times whereas its retail portion has been subscribed 7.42 times. The NII portion of the book build issue has been subscribed 16.50 times while QIB segment has received 0.45 times bids against its offer.
Happy Forgings IPO: Should you subscribe?
Giving subscribe tag to Happy Forgings IPO, Geojit Securities said, “At the upper price band of ₹850, HFL is available at a P/E of 33.6x (FY24 annualized), which seems in-line compared to its peers. Considering the company’s well-established standing in the crankshaft manufacturing industry, notable customers, solid financials, varied product range, global reach with future strategic acquisitions and expansion plans, and new customer additions, we recommend a ‘Subscribe’ rating for the issue on a short to medium-term basis.”
Nirmal Bang has also give ‘apply’ rating to the book build issue citing, “Happy Forgings has differentiated itself by (i) focusing on developing heavier, high precision, critical and value added products; (ii) for multiple end-use industries, which typically have extremely closed tolerances. This has translated to the company commanding substantially higher margins and return ratios compared to peers. The company’s valuation at 38.4x FY23 P/E appears attractive compared to peers and thus we recommend to Subscribe to the IPO.”
Arihant Capital, BP Equities, Hem Securities, Marwadi Shares and Finance Ltd, Reliance Securities, SMIFS, Sushil Finance, Swastika Investmart and Ventua Securities have also given ‘subscribe’ tag to Happy Forgings IPO.
Happy Forgings IPO details
In the wake of T+3 listing, Happy Forgings IPO allotment date is most likely on 22nd December 2023. Likewise, most likely Happy Forgings IPO listing date is 27th December 2023.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 21 Dec 2023, 08:53 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.