Happy Steels IPO

About Happy Steels IPO

The Happy Steels IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The offer consists of a fresh issue component. The fresh issue will include up to 38,50,000 equity shares aggregating up to Rs. [TBA] crores. The total number of shares is 38,50,000 and the aggregate amount is yet to be finalised.

Happy Steels IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

Happy Steels was incorporated in 1996 and is an integrated manufacturer of safety-critical, forged and machined transmission and driveline components for on-highway, off-highway, EV and defence applications. The company’s product portfolio consists of a wide range of axles, long spline shafts, spindle and other related components that are critical of vehicle performance and safety.

Objectives of Happy Steels IPO

• Capital expenditure towards purchase of additional plant and machinery for their existing manufacturing unit.

• Repayment/ Prepayment of term loans to banks.

• General corporate purpose.

Industry Outlook

Rising demand for fuel-efficient, high-performance vehicles is driving growth in the Automotive Axle Market. Automakers are turning to high-strength steel and other lightweight materials to enhance fuel efficiency by making vehicles lighter. Cutting-edge axle technologies, such as independent suspension systems and electronically controlled differentials, are helping to improve vehicle performance and drive market growth. As the automotive industry continues to evolve, businesses that invest in research and development of durable, yet lightweight, high-performance axles will gain a competitive advantage. Rear automotive axles’ segment is projected to expand at a CAGR of 11.9% through 2035.

About Happy Steels

Happy Steels was incorporated in 1996 and is an integrated manufacturer of safety-critical, forged and machined transmission and driveline components for on-highway, off-highway, EV and defence applications. The company’s product portfolio consists of a wide range of axles, long spline shafts, spindle and other related components that are critical of vehicle performance and safety. Over the years, the company has developed strong capabilities in manufacturing safety-critical, high strength and load-bearing components through a combination of forging, precision machining, and stringent quality control processes that are supplied to original equipment manufacturers (OEMs) and Tier-I suppliers in India and overseas. Their manufacturing operations are supported by an integrated process covering raw material procurement, forging, heat treatment, machining, gear cutting, drilling, surface hardening, grinding, inspection and packing. These capabilities enable them to manufacture components with defined mechanical properties, dimensional accuracy and consistency, in line with customer specifications.

Strengths of Happy Steels

• An integrated manufacturing enabling diversified product offerings with enhanced value addition.

• Safety-critical and load-bearing products.

• Scale and experience.

• Quality assurance and standards.

• Diversified domestic and international geographical presence.

• Long-Term customer relationships reflecting consistent delivery performance.

Risks of Happy Steels

• Their top ten customers contribute the majority of their revenues from operations and they do not have long-term or firm commitment arrangements with any of their customers.

• A significant portion of their purchases is sourced from a limited number of suppliers.

• Their business is largely concentrated in three states i.e. Punjab, Haryana and Tamil Nadu.

• A portion of their revenue is derived from their growing export operations that are concentrated in select overseas markets.

• Fluctuation in the prices of their principal raw materials, power, fuel and consumables may adversely affect their business, profitability and results of operations.

Anchor Investor Bidding Date: TBA

Registrar: Bigshare Services Private Limited

Book Running Lead Managers:

Share India Capital Services Private Limited

Master Capital Services Limited

Happy Steels Business Model

The company earns its revenue as an integrated manufacturer of safety-critical, forged and machined transmission and driveline components for on-highway, off-highway, EV and defence applications.

Happy Steels Growth Trajectory

Happy Steels’ Total Income for FY25 was ₹82.524 crores, whereas in FY24 and FY23 it was ₹82.238 crores and ₹94.201 crores, respectively.

The Profit After Tax for FY25 was ₹2.342 crores, whereas in FY24 and FY23 it was ₹4.689 crores and ₹0.404 crores, respectively.

Their EBITDA for FY25 was ₹8.492 crores, whereas in FY24 and FY23 it was ₹11.079 crores and ₹11.079 crores, respectively.

Happy Steels Market Position

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹82.524 crores, ₹2.342 crores, and ₹8.492 crores, respectively.

How to apply for Happy Steels IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.

• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.

• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.

• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.

• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.