Happy Forgings share price up marginally after decent listing. Should you buy or book out?

Following the listing, the stock was trading just about 1% higher at Rs 1,010 on the BSE in the morning session when some buying action was seen on the counter.

“Happy Forgings presents a mixed bag for investors. The lower-than-expected listing raises concerns, but the decent gain and strong fundamentals offer a counterpoint. A careful evaluation of both sides is crucial before making any investment decisions. Given the uncertainty surrounding the listing, a cautious approach is recommended,” said Shivani Nyati, Head of Wealth, Swastika Investmart.

The market expert recommends existing investors in the IPO to consider holding their shares with a stop loss at Rs 900 and those who were looking for listing gains may exit their positions, she opined.

Also read: Happy Forgings shares list at 18% premium over IPO price

Happy Forgings IPO had received a strong subscription of 82 times and was driven by institutional investors. The categories reserved for retail investors and NIIs were subscribed 15 times and 62 times, respectively. The QIB portion was booked 220 times.

Happy Forgings is an engineering-led manufacturer of safety-critical, heavy forged and high-precision machined components. The company caters to domestic and global original equipment manufacturers, manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, its clients are manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.The company owns and operates three manufacturing facilities, of which two are located at Kanganwal in Ludhiana, Punjab and one is located at Dugri in Ludhiana, Punjab. The annual aggregate installed capacity for forging and machining stands at 120,000.00 MT and 47,200.00 MT as of September 30, 2023, respectively.

Net proceeds are proposed to be utilised for the purchase of equipment, plant and machinery, prepayment of debt and other general corporate purposes.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)