Happy Steels Limited

Happy Steels Limited operates a manufacturing facility in Ludhiana Punjab covering approximately 16,427 square yards with installed capacity of 8,640 MT per annum for cutting, 7,776 MT per annum for forging and 5,861 MT per annum for machining, enabling scalable production across multiple product categories.

The company's integrated manufacturing capabilities span raw material procurement, forging, heat treatment, precision machining, gear cutting, drilling, surface hardening, grinding, inspection and packing, producing axles, long spline shafts, spindles and other load-bearing components supplied to OEMs and Tier-I suppliers in India and overseas markets. It serves automotive and industrial customers across on-highway, off-highway, EV and defence segments, with robust quality management systems aligned to automotive industry standards. As of May 31, 2026 the company had 403 employees and promoters Parveen Kumar Garg, Abhishek Garg, Deepak Garg and Parveen Kumar Garg HUF hold 99.33% pre-IPO stake.

The issue is entirely a fresh issue of 37,88,000 equity shares aggregating to ₹25 Cr at a price band of ₹62 to ₹66 per share, implying a pre-issue market cap of ₹94.29 Cr, listing on NSE SME on July 16, 2026.

Proceeds will fund additional machinery capex (₹13.16 Cr), partial term loan repayment (₹4.98 Cr) and general corporate purposes. At the upper band the post-issue P/E of 13.28x FY26 earnings appears reasonable but is flagged as aggressively priced by the reviewer given inconsistent bottom lines — PAT declined sharply from ₹4.69 Cr (FY24) to ₹2.34 Cr (FY25) before recovering to ₹7.10 Cr in FY26. Key strengths include integrated forging-to-machining capabilities, EV and defence segment exposure, diversified domestic and international customer base and improving FY26 margins; key risks include high D/E of 1.18, inconsistent profitability track record, highly competitive and fragmented automotive components segment, and all three recently listed sector peers listing at losses (Anubhav Plast -5%, Kasturi Metal -1.31%, Shri Kanha -7.11%).