Auto-ancillaries company Happy Forgings Limited is reportedly planning to launch an IPO to list its shares on the Indian bourses and raise around Rs 1,000 to Rs 1,200 crores.

Happy Forgings Limited is an auto component manufacturer headquartered in Ludhiana. The company was incorporated in 1979 and is one of the largest full services suppliers of forged engine and driveline components in India. It manufactures several such as Crank Shafts, Front Axle Beams, Steering Knuckles, and others and caters to the tractor, automotive, earth moving, railway, and pipe fittings industries.

It is also the largest supplier of forged and machined components for CVs and tractors. The company’s clientele includes Mahindra, Eicher Motors, Eaton, Ashok Leyland, Bayraktor, JCB, Meritor, Wipro, and several others. 

Motilal Oswal PE Fund is an investor since 2018 when it invested Rs 200 crores in the company for an 11.76% stake. In FY22, the company reported revenues of Rs 860 crores, up by 47%, and profits of Rs 142 crores, up by 65%. Moreover, it had an aggregate debt of Rs 240 crores on account of its ongoing capex plans to improve its capacity and higher working capital requirements.

According to the report published by Economic Times, the company was in talks with Motilal Oswal Investment Advisory and JM Financial for the IPO. The IPO will reportedly be a mix of fresh issues and OFS. The OFS would allow existing investors to offload their holdings while the funds raised via the fresh issue would be used to repay debts and develop new products.