Happy Steels IPO

The Happy Steels SME IPO runs from 9 Jul 2026 to 13 Jul 2026, offered at a price band of ₹62–66 per share, and is set to list on NSE. The company is looking to raise ₹25 crore through the offer. Retail investors bid in lots of 2000 shares, a minimum application of ₹2,64,000.

Issue structure

The IPO is structured entirely as a fresh issue of ₹23.75 crore, so the full proceeds flow to the company to fund its stated objects of the issue.

Objects of the issue

Per the offer document, the company intends to deploy the net proceeds primarily toward capital expenditure towards purchase of additional plant and machinery for the existing manufacturing unit (₹13.16 crore), alongside repayment/ prepayment of term loans to banks (₹4.98 crore). In all, 4 objects are disclosed — the full break-up is in the table above.

Financials

In FY2026, Happy Steels reported revenue of ₹96.57 crore and a net profit of ₹7.1 crore. Revenue grew from ₹82.24 crore in FY2024 to ₹96.57 crore in FY2026 (+17.0%). Net worth stood at ₹39.98 crore at the end of FY2026. At the upper band, that puts the issue at roughly 9.7× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.

Valuation

At the upper band, the issue is priced at 13.28× post-issue earnings and 1.73× book value, against a return on net worth of 17.76% and a debt-to-equity ratio of 1.18. These ratios come from the offer document and are for comparison, not a recommendation.

Peer comparison

The offer document names listed peers including EMM Force Autotech Limited and Gna Axles Limited, with a median peer P/E of about 19.4×. The issue's own post-issue P/E works out to 13.28×.

Promoters

The promoters of the company are Parveen Kumar Garg, Abhishek Garg, Deepak Garg and Parveen Kumar Garg (HUF). Promoter holding stands at 99.33% before the issue and comes down to 72.99% after listing.

Grey market premium (GMP)

In the unofficial grey market, Happy Steels shares are quoted at a premium of ₹10 implying an expected listing around ₹76, about +15.2% over the upper band. Grey market premium is a sentiment indicator set by private dealers, not the company or the exchange — it moves quickly and is not a reliable predictor of the actual listing price.

Subscription

The Happy Steels IPO was subscribed 77.81 times overall. The strongest demand came from non-institutional investors (NII) at 113.6 times, with qualified institutional buyers (QIB) at 59.01× and retail investors at 73.25×.

Listing performance

Happy Steels listed on 16 Jul 2026 at ₹68, a premium of +3.0% over the issue price of ₹66.

What to weigh

When evaluating the Happy Steels IPO, the data points most investors look at are the fresh-issue-versus-OFS split, the revenue and profitability trend, subscription demand across investor categories and the grey market premium. Grey market premium and subscription figures reflect short-term sentiment rather than long-term fundamentals; the figures on this page are for information only and are not investment advice.

About Happy Steels

Established in 1996, Happy Steel Limited is an integrated manufacturer of safety-critical, forged, and machined transmission and driveline components catering to on-highway, off-highway, electric vehicle (EV), and defence applications. The company operates across the complete manufacturing value chain, with capabilities spanning raw material procurement, forging, heat treatment, precision machining, gear cutting, drilling, surface hardening, grinding, inspection, and packing. This integrated process framework enables the company to deliver components with defined mechanical properties, high dimensional accuracy, and consistent quality in line with stringent customer specifications. Happy Steel Limited’s product portfolio includes a wide range of axles, long spline shafts, spindles, and other safety-critical and load-bearing components that play a crucial role in vehicle performance and safety. These products are supplied to original equipment manufacturers (OEMs) and Tier-I suppliers in India and overseas markets. The company operates a manufacturing facility in Ludhiana, Punjab, covering approximately 16,577 square yards. As of Financial Year 2025, the facility has an installed capacity of 8,640.00 MT per annum for cutting operations, 7,776.00 MT per annum for forging, and 4,492.80 MT per annum for machining, enabling scalable production across multiple product categories. The company has developed strong in-house expertise in manufacturing high-strength, safety-critical components through advanced forging techniques, precision machining, and stringent quality control systems. Its quality management framework is designed to ensure consistent compliance with customer requirements, applicable regulatory norms, and global automotive industry standards. As of December 31, 2025, Happy Steel Limited employed 429 personnel across various departments, supporting operations, quality assurance, engineering, and management functions. Competitive Strengths: Integrated manufacturing capabilities enabling diversified product offerings with enhanced value addition Strong focus on safety-critical and load-bearing components In-house expertise across forging, heat treatment, precision machining, and quality control Robust quality management systems aligned with automotive industry standards Diversified domestic and international customer base Scalable manufacturing infrastructure supporting future growth