Happy Forgings Limited IPO is now live on Upstox!

Incorporated in 1979, Happy Forgings Limited is India’s fourth largest engineering-led manufacturer of complex and high-precision machined components. Its product portfolio includes crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, camshafts, piston pins, pinion shafts, suspension products and valve bodies.

These products are used in commercial vehicles, farm equipment, off-highway vehicles, wind turbines, railways, power generation and the oil and gas industry. It supplies products to each of the top five OEMs (Original Equipment Manufacturers) in the medium and heavy commercial vehicle industry and four of the top five OEMs in the farm equipment industry in India.

Some of its customers include AAM India Manufacturing Corporation, Ashok Leyland, Bonfiglioli Transmissions, Dana India, IBCC Industries, Mahindra & Mahindra and more. It also serves customers outside India in countries such as Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom and the United States of America as of 30 September 2023.

It owns and operates three manufacturing facilities in Ludhiana, Punjab. It is the second company in India to have a 14,000 tonne forging press. It has automated specific processes by using robots, and has ten robots installed across its manufacturing facilities as of 30 September 2023.

The company has seen a CAGR rise of 26% in its revenue from operations and 34% in its profit between FY21 and FY23. Moreover, the Indian forging market is expected to grow at a CAGR of 5% by FY29, which could benefit the company.

And now, Happy Forgings Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be used to prepay borrowings, purchase equipment, plant and machinery; and for general corporate purposes. Its shares will be listed on the NSE and the BSE.

Here are key details about the Happy Forgings IPO:

Company Name Happy Forgings Limited
Company Type Private
Company Established 1979
Happy Forgings IPO Open Date 19th December 2023
Happy Forgings IPO Close Date 21st December 2023
Happy Forgings IPO Allotment Status 22nd December 2023
Credit of Shares to Demat 26th December 2023
Happy Forgings IPO Listing Date 27th December 2023
Happy Forgings IPO Face Value ₹2 per share
Happy Forgings IPO Lot size 17 shares
Happy Forgings IPO Issue Size Approx ₹1,009 crore
Happy Forgings IPO Listed at NSE, BSE
Happy Forgings IPO Price ₹808 – ₹850 per share


  • Fourth largest engineering led manufacturer of complex and safety-critical, and high precision machined components in India with an experience of 40 years.
  • Only the second company in India to have a 14,000 tonne forging press and among four companies in India that possess a 8,000 tonne forging press as of 31 March 2023.
  • In FY23, the company derived 43.6% of its revenue from the automotive sector, whereas the remaining revenue came from the non-automotive sector.
  • Long standing customer relationships, as 75% of its revenue from sales came from customers with whom the company has relations for more than 10 years.
  • Diversified customer base as it served 66 customers in FY23 spanning industries such as automotive, oil and gas, power generation, railways and wind turbine.
  • EV (Electric Vehicle) penetration is expected to have limited impact on its operations as heavy-duty vehicles will continue to use traditional internal combustion engines (ICE) or alternative engine technologies that require crankshafts.
  • Track record of healthy financial performance with an EBITDA margin of 27%, 26% and 28% in FY21, FY22 and FY23 respectively.

Risks and threats

  • Business largely depends on its top 10 customers, which accounted for 79%, 74% and 70% of its revenue from operations in FY21, FY22 and FY23 respectively.
  • It faces competition from Bharat Forge, Craftsman Automation, RK Forging, Thysenkrupp, American Axle & Manufacturing, Tianrun Crankshaft and Guilin FUDA.
  • Has incurred indebtedness as its total outstanding borrowings amassed to ₹259 crore as of 31 October 2023.
  • Has significant power and fuel requirements with a spending of ₹75 crore in FY23.
  • Capital-intensive business with a capital expenditure of ₹174 crore in FY23. Unable to get additional financing could impact business operations.
  • Derives a significant portion of its revenue from the sale of crankshafts, making up 45% of the total revenue from sale of products in FY23.

You can now apply for the Happy Forgings IPO on Upstox here.