Happy Steels IPO

About Happy Steels IPO

The public issue of the Happy Steels IPO, an NSE-SME Emerge IPO, opens on July 9, 2026 and closes on July 13, 2026. The allotment of shares will take place on July 14, 2026. The credit of shares to the demat account will take place on July 15, 2026. The initiation of refunds will also take place on July 15, 2026. The listing of shares will take place on July 16, 2026.

The offer consists entirely of a fresh issue and there is no offer for sale component. The fresh issue will include 35,98,000 shares (aggregating up to ₹23.75 crore). This excludes the market maker allocation of 1,90,000 shares (aggregating up to ₹1.25 crore). Since there is no offer for sale (OFS), the total number of shares issued in the IPO is 37,88,000 aggregating to ₹25.00 crore.

Happy Steels IPO price band has been set in the range of ₹62 to ₹66 per share. The lot size for an application is dependent on the price, which has been set at 2 lots of 4,000 shares, entailing a minimum investment of ₹2,64,000. The minimum investment for HNIs is 3 lots of 6,000 shares aggregating to a total investment value of ₹3,96,000.

Happy Steels is a 30-year-old company, engaged in the manufacture of auto components. It makes safety-critical, forged and machined transmission and driveline components. It caters to on-highway, off-highway, electrical vehicles (EV), and defence related applications.

Objectives of Happy Steels IPO

• Funding capital expenditure for purchasing additional machinery for existing manufacturing unit.
  
• Repayment / Prepayment of term loans to banks.
  
• General corporate purpose.
  
• Listing the company on the stock exchanges.
  

Industry Outlook

The Indian auto component industry recorded combined turnover of ₹6,73,000 crore in FY25, registering CAGR growth of 14% between FY20 and FY25. By the year 2030, auto component exports are expected to be around ₹8,54,700 crore. Currently, exports account for about 29% of the total auto component manufacturing output, which makes the industry critical to exports. In terms of market share, the US is 32%, Europe 29.5%, and Asia 26%.

While the Asian markets and the US markets are growing at robust rates of 15% and 8% respectively, the European demand has actually contracted. India’s auto component exports are expected to cross $70 billion by 2030, according to a McKinsey report. In India, the unorganized auto component market caters to the aftermarket, while the organized sector caters to the original equipment manufacturers (OEMs).

One of the big growth areas is supply of auto component to EVs. Government has set a target of 30% electric mobility by 2030, and that is likely to result in a surge in demand for EV components. Also, the Bharat New Car Assessment Program (BNCAP) is likely to boost the auto component value chain through advanced manufacturing, fostering innovation, and promoting global standards. India offers global players a cost edge. The automotive axle market is expected to grow 3-fold in next 10 years.

About Happy Steels

Happy Steels manufactures safety critical, forged, and machined transmission and driveline components. It also makes components for EVs, and for defence applications. Its product portfolio includes axles, long spine shafts, spindles etc.The company is ISO 14001: 2015 and ISO 45001: 2018 certified for its quality management systems. As of FY25, domestic sales accounted for 90%, with major markets being Punjab, Tamil Nadu, Haryana, and Madhya Pradesh. The 10% exports was mainly to the US and Indonesia. For FY26, the top 10 customers accounted for 72.17% of its sales.

Strengths of Happy Steels

• Integrated manufacturing process enables enhanced value addition.
  
• Being safety critical and load bearing products, trust matters a lot in the business.
  
• The model is scalable, and management expertise is an added edge.
  
• Diversified customer base across India and other countries.
  
• Long term relationships reflect consistent delivery performance.
  

Risks of Happy Steels

• The company runs risk of customer concentration with top 10 at 72%
  
• It also runs supplier concentration risk with top 10 at 96%.
  
• There is a geographical concentration of business in Punjab, Tamil Nadu, and Haryana.
  
• Its export markets are almost 85% dominated by the US and Indonesia only.
  
• The company may have to consistently raise funds to meet capex and working capital needs.
  
• The key inputs of the business are subject to price volatility and supply chain constraints.
  
• The unorganized sector is a competition especially in the non-OEM product market.
  
• Trade receivables are relatively high at around 25% of sales.
  
• Growth in sales and profits has not been consistent in recent years.
  

They have mentioned listed peers which fall in the similar line of business as of the company for broad comparison purposes. Only consolidated figures have been considered.

Note: (i) Source – All the financial information for listed industry peer mentioned above is sourced from the Financial Results/ Red Herring Prospectus/ Prospectus/ of the aforesaid companies for the year ended March 31,2025 and stock exchange data dated February 11, 2026 to compute the corresponding financial ratios.

(ii) For the company, they have taken Current Market Price as the issue price of equity share. Further, P/E Ratio is based on the current market price of the respective scrips.

(iii) The EPS, NAV, RoNW and total Revenue of the company are taken as per Restated Financial Statement for the F.Y. 2024-25.

(iv) NAV per share is computed as the closing net worth divided by the weighted average number of paid-up equity shares as on March 31, 2025.

(v) RoNW has been computed as net profit after tax divided by closing net worth.

(vi) Net worth has been computed in the manner as specified in Regulation 2(1) (hh) of SEBI (ICDR) Regulations, 2018.

(vii) The face value of Equity Shares of the Company is ₹ 10/- per Equity Share and the Issue price at the upper band is [6.6X] times the face value of equity share.

Anchor Investor Bidding Date: July 8, 2026

Registrar Details
Bigshare Capital Services Private Ltd
Email: ipo@bigshareonline.com
Phone: +022-6263-8200

Book Running Lead Manager
Share India Capital Services Private Ltd

Happy Steels Contact Details
Kanganwal Road, Jaspal Banger, Ludhiana – 141-122 (Punjab), India.
Email: cs@happysteels.com
Phone: +91-62398-21029

Happy Steels Business Model

Happy Steels is positioned as a value-added manufacturer in the auto ancillary space; catering to the automotive, industrial, EV, and defence applications. It focuses more on the OEM space, with leeway to rapidly expand its export business. Rigorous quality control has been part of the business model.

Happy Steels Growth Trajectory

Happy Steels Total Income for FY25 was ₹82.52 crores, whereas in FY24 and FY23 it was ₹82.24 crores and ₹94.20 crores, respectively.

The Profit After Tax for FY25 was ₹2.34 crores, whereas in FY24 and FY23 it was ₹4.69 crores and ₹0.40 crores, respectively. PAT margins went up from 0.43% to 2.85% between FY23 and FY25.

Their EBITDA for FY25 was ₹8.49 crores, whereas in FY24 and FY23 it was ₹11.08 crores and ₹5.36 crores, respectively. EBITDA margins went up from 5.70% to 10.34% between FY23 and FY25.

Happy Steels Market Position

It is a key player in the specific auto component segments and its long relationships with the original equipment manufacturers (OEMs) is an added advantage. However, it does have to compete with established auto ancillary names in India as well as the unorganized sector for after trades. Capacity utilization has been relatively high at 82% across its various business lines.

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.