Happy Forgings IPO Lists at 17.65% premium, trends higher

Listing day show of Happy Forgings Ltd

Happy Forgings Ltd had a very robust listing on 27th December 2023, listing at a smart premium of 17.65% on the NSE and on top of that managed to gain further from the listing price. The stock of Happy Forgings IPO closed the day at ₹1,030.10 per share, a premium of 3.01% over the listing price of ₹1,000 per share and a premium of 21.19% over the IPO issue price of ₹850 per share. Certainly, the IPO allottees of Happy Forgings Ltd would be pleased at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of Happy Forgings Ltd opened at ₹1,001.25 per share, a premium of 17.79% over the IPO issue price of ₹850 per share. For the day, the stock closed on the BSE at ₹1,029.80, an overall gain of 2.85% over the IPO listing price of ₹1,001.25 per share and a premium of 21.15% over the issue price of ₹850 per share.  On the NSE and the BSE, the stock of Happy Forgings Ltd closed the listing day well above the listing price and the IPO issue price.

While the closing price of Happy Forgings Ltd on 29th November 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 213 points higher while the Sensex closed a full 702 points higher. Both the Nifty and the Sensex showed sterling gains on Wednesday, gaining close to 1% in a single day of trade. That rubbed off on the stock price performance of Happy Forgings Ltd.

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 82.63X  overall and QIB subscription was at 214.65X. In addition, the retail portion had got subscribed 15.40X in the IPO while the HNI / NII portion also got a healthy subscription of 63.45X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed above the issue price of the IPO as well as the listing price for the day.

The IPO price was fixed at the upper end of the band at ₹850 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹808 to ₹850 per share. On 27th December 2023, the stock of Happy Forgings Ltd listed on the NSE at a price of ₹1,000 per share, a strong premium of 17.65% over the IPO issue price of ₹850 per share. On the BSE also, the stock listed at ₹1,001.25, a premium of 17.79% over the IPO issue price of ₹850 per share. Here is the Happy Forgings Ltd listing story on 27th December 2023.

How the stock of Happy Forgings Ltd closed on both exchanges

On the NSE, Happy Forgings Ltd closed on 27th December 2023 at a price of ₹1,030.10 per share. That is a first day closing premium of 21.19% on the issue price of ₹850 and also a premium of 3.01% on the listing price of ₹1.000 per share. The stock traded in a range for most part of the day. On the BSE also, the stock closed at ₹1,029.80. That represents a first day closing premium of 21.18% above the IPO issue price and also a premium of 2.85% above the listing price on the BSE at ₹1,001.25 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, and closing above the issue price and the listing price of the day. In fact, the opening price was closer to the low price of the day on the BSE as well as on the NSE. The high price of the day on both the stock exchanges on 27th December 2023 was the well above the listing price, but the stock did see some selling pressure at higher levels. In fact, on the NSE, the stock closed with open buying quantity of 375 shares, showing pent up demand for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Happy Forgings Ltd on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 27th December 2023. On Day-1 of listing, Happy Forgings Ltd touched a high of ₹1,087.40 per share on the NSE and a low of ₹961.25 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was closer to the IPO opening price, the stock of Happy Forgings Ltd closed sharply lower than the high price of the day as selling at higher levels was visible. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Happy Forgings Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹1,200 per share while the lower circuit price was ₹800 per share. During the day, the high price of the day at ₹1,087.40 was substantially lower than the upper band price while the low price of the day at ₹961.25 per share was well above the lower band price for the day at ₹800 per share. On Day-1 of listing, the Happy Forgings Ltd stock traded a total of 141.62 lakh shares on NSE amounting to traded value of ₹1,441.12 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending buy orders of 375 shares on the NSE.

Price volume story of Happy Forgings Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 27th December 2023. On Day-1 of listing, Happy Forgings Ltd touched a high of ₹1,087.85 per share on the BSE and a low of ₹961.00 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was closer to the IPO opening price, the stock of Happy Forgings Ltd closed sharply lower than the high price of the day as selling at higher levels was visible. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Happy Forgings Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹1,235.75 per share while the lower circuit price was ₹823.85 per share. During the day, the high price of the day at ₹1,087.85 was substantially lower than the upper band price while the low price of the day at ₹961.00 per share was well above the lower band price for the day at ₹823.85 per share. On Day-1 of listing, the Happy Forgings Ltd stock traded a total of 7.65 lakh shares on BSE amounting to traded value of ₹77.93 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending buy orders on the BSE also.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some genuine hint of profit booking visible by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 141.62 lakh shares traded during the first day of trading, the deliverable quantity represented 53.34 lakh shares or a deliverable percentage of 37.67% on the NSE, which is definitely lower than the routine listing day median.

That shows a lot of speculative trading action in the counter on the first day of trading. Even on the BSE, out of the total 7.65 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 2.98 lakh shares representing total deliverable percentage of 38.95%, which is at par with the NSE, but lower than the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Happy Forgings Ltd had a market capitalization of ₹9,701.22 crore with free-float market cap of ₹1,746.22 crore. Happy Forgings Ltd has issued capital of 942.05 crore shares with a par value of ₹2 per share.