Precision machined components manufacturing company Happy Forgings shares recorded 21 percent gains on the debut, i.e. December 27, which were better than Credo Brands Marketing and RBZ Jewellers' performance.
The stock opened 17.6 percent higher at Rs 1,000 on the NSE, which was lower than analysts' expectations as well as a grey market premium. This was not even in line with the IPO subscription figures and the strong equity market conditions. Analysts had expected it to list with more than 25 percent gains.
The stock gradually extended gains as the day progressed and hit a day's high of Rs 1,087.40 in the afternoon.
In the last hour, the stock saw some profit-taking and finally settled at Rs 1,030.80 with 21.27 percent gains, while on the BSE, it closed at Rs 1,029.80, up 21.15 percent.
Happy Forgings traded with a volume of 1.4 crore equity shares on the NSE, and 7.64 lakh shares on the BSE.
The heavy forgings manufacturer launched its Rs 1,009-crore public issue during December 19-21 and was subscribed 82.04 times. The initial public offering was a mix of fresh issue of Rs 400 crore and an offer-for-sale of Rs 608.59 crore.
Also read: Companies raise nearly Rs 9,000 crore in Dec IPO rush
The price band for the offer was Rs 808-850 per share.
Financially, the performance in the past years remained strong as the net profit grew by 46.7 percent year-on-year to Rs 208.7 crore for the year ended March FY23 and revenue increased by 39 percent to Rs 1,197 crore in the same period.
Further, its EBITDA (earnings before interest, tax, depreciation and amortisation) in FY23 jumped 48 percent to Rs 341 crore and its margin expanded by 170 bps to 28.5 percent compared to the previous year.
Also read: Innova Captab IPO: Check share allotment & listing dates, grey market premium here
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