Happy SteelsIPO Review — Financials, Valuation & Peers
A data-only look at the Happy Steels IPO: restated financials, valuation ratios, the RHP peer group and third-party analyst views. ipostation does not rate IPOs — nothing here is a recommendation.
Financials (₹ Cr)
| Period Ended | Revenue | PAT | EBITDA | Net Worth | Total Assets | Borrowings | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY 2024 | 82.24 | 4.69 | 11.08 | 30.54 | 78.37 | 35.69 | — |
| FY 2025 | 82.52 | 2.34 | 8.49 | 32.88 | 78.62 | 34.21 | — |
| FY 2026 | 96.57 | 7.1 | 15.27 | 39.98 | 99.66 | 47.18 | 6.77 |
Restated figures from the offer document. Amounts in ₹ crore; EPS in ₹ per share. FY = the 12 months ended 31 March.
KPIs & Valuation
- P/E (pre-issue)
- 9.76x
- P/E (post-issue)
- 13.28x
- RoNW
- 17.76%
- RoE
- 19.49%
- RoCE
- 20.89%
- Debt / Equity
- 1.18
- EPS (pre-issue)
- ₹6.77
- EPS (post-issue)
- ₹4.97
- EBITDA Margin
- 16.14%
- PAT Margin
- 7.5%
- P/BV
- 1.73x
- NAV / share
- ₹38.09
- Market Cap
- ₹94.29 Cr
As of 31 Mar 2026 (latest reported period in the offer document). Market cap is computed on a post-issue basis at the upper price band.
Peer Comparison
| Company | EPS (₹) | NAV (₹) | P/E | RoNW | P/BV | Statements |
|---|---|---|---|---|---|---|
| Happy Steels | 6.77 | 38.09 | — | 17.76% | — | Standalone |
| EMM Force Autotech Limited | 5.88 | 44.52 | 19.39x | 9.04% | 2.59x | Consolidated |
| Gna Axles Limited | 27.24 | 223.89 | 13.61x | 11.65% | 1.66x | Consolidated |
| Kross Limited | 8.56 | 75.92 | 21.34x | 11.27% | 2.43x | Standalone |
Peer group as disclosed in the offer document, figures as of 31 Mar 2026. The issuer’s P/E is computed at the upper price band.
Promoters & Shareholding
Promoters: Parveen Kumar Garg, Abhishek Garg, Deepak Garg and Parveen Kumar Garg (HUF)
- Holding (pre-issue)
- 99.33%
- Holding (post-issue)
- 72.99%
- Dilution
- 26.34%
Analysis in brief
Anchor book
3 anchor investors participated in the Happy Steels IPO ahead of the public offer, together allocated ₹7.1 crore. Anchor investors are institutions allotted shares at the issue price a day before bidding opens, in exchange for a mandatory post-listing lock-in — their names and cheque sizes are disclosed, which is why the anchor book is read as an institutional signal. The largest allocations went to SHINE STAR BUILD-CAP PVT.LTD. (₹3.1 crore), PESB ALPHA FUND (₹2.01 crore) and SECUROCROP BHARAT AMRITKAAL FUND-I (₹1.99 crore). Investor categories represented include Other. The lock-in on half the anchor shares ends on 13 Aug 2026, with the remainder locked until 12 Oct 2026.
Margin and return profile
The offer document gives a read on the operating engine behind the issue. Happy Steels operates at an EBITDA margin of 16.14% and a net (PAT) margin of 7.5% — the share of revenue retained at the operating and the net level respectively. Capital efficiency reads at a return on capital employed (RoCE) of 20.89% and a return on equity (RoE) of 19.49%. At the upper band, the post-issue market capitalisation works out to about ₹94.29 crore. These are offer-document figures for the latest reported period (as of 31 Mar 2026); they describe the business as disclosed, not how the stock will trade.
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.
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.
Frequently asked questions
- What is the reservation split in the Happy Steels IPO?
- Of the total shares offered, retail investors get 35.02%, QIBs 20.07% (plus 29.91% anchor), non-institutional investors 15.01%.
- Who are the promoters of Happy Steels and what is their holding?
- The promoters are Parveen Kumar Garg, Abhishek Garg, Deepak Garg and Parveen Kumar Garg (HUF). Promoter holding is 99.33% before the issue and 72.99% after listing.
- What is the P/E ratio of the Happy Steels IPO?
- At the upper price band, the Happy Steels IPO is valued at 9.76× pre-issue earnings and 13.28× post-issue earnings, based on the financials disclosed in the offer document.
- What are the objects of the Happy Steels IPO?
- The net proceeds go primarily toward capital expenditure towards purchase of additional plant and machinery for the existing manufacturing unit, among 4 disclosed objects.