Harsha Engineers IPO Details: Harsha Engineers International, a manufacturer of precision bearing cages, will launch its initial public offering (IPO) on September 14, 2022, and conclude on September 17. For its Rs. 755-crore issue size, the company has set a price band of Rs. 314-330 per share.
Harsha Engineers IPO Details
|IPO Opening Date||Sep 14, 2022|
|IPO Closing Date||Sep 16, 2022|
|Price Band||Rs. 314 to Rs. 330 per share|
|Lot Size||45 Shares|
|Issue Size (Rs. Cr.)||(To be announced) shares of Rs. 10 (aggregating up to Rs. 755.00 Cr)|
|Fresh Issue||(To be announced) shares of Rs. 10 (aggregating up to Rs. 455.00 Cr)|
|Offer for Sale||(To be announced) shares of Rs. 10 (aggregating up to Rs. 300.00 Cr)|
|Face Value||Rs. 10 per share|
|Issue Type||Fixed Price Issue IPO|
|Exchange Board||BSE, NSE|
|Retail Shares Offered||Not less than 35% of the Net Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Net Offer|
|QIB Shares Offered||Not more than 50% of the Net Offer|
|Basis of Allotment Date||Sep 21, 2022|
|Initiation of Refunds||Sep 22, 2022|
|Credit of Shares to Demat Account||Sep 23, 2022|
|Harsha Engineers IPO Listing Date||Sep 26, 2022|
Harsha Engineers IPO Date
The company previously stated that its issue will be available for subscription from September 14, 2022 to September 16, 2022. As of 2020, it claims a 50% market share in the organised segment of the Indian bearing cages market and a 5.2% market share in the global organised bearing cages market for brass, steel, and polyamide cages.
Harsha Engineers IPO Issue Size
The IPO consists of a fresh issue of equity shares worth Rs. 455 crore and an offer-for-sale (OFS) by existing shareholders worth up to Rs. 300 crore. Harsha Engineers IPO Issue Size is Rs. 755 Cr. Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala, and Nirmala Shah will sell shares as part of the OFS.
Harsha Engineers IPO Price Band
Shares will be sold by the company for between Rs. 314 and Rs. 330 each. Analysts following the grey market attribute the high valuations to solid fundamentals, growth prospects, increased market share, and reasonable valuations.
Harsha Engineers IPO Lot Size
The IPO lot size for Harsha Engineers is 45 shares. A retail investor can apply for up to 13 lots (585 shares or Rs. 193,050). This Ahmedabad-based firm will reserve up to 50% of the total offer for qualified institutional buyers and 15% for non-institutional investors. The remaining 35% stake is reserved for retail investors.
Harsha Engineers Allotment Date and Listing Date
On September 14, 2022, the anchor book bidding will begin. Successful investors will receive their shares on dematerialized accounts on September 23, 2022. Harsha Engineers IPO Allotment Date is 21 September 2022. Harsha Engineers IPO Listing Date is 26 September 2022. According to market observers, Harsha Engineers shares are currently commanding a premium (GMP) of Rs. 190-200 in the grey market. On Monday, September 26, 2022, the company’s shares are expected to be listed on the leading stock exchanges BSE and NSE.
About Harsha Engineers Limited IPO
Harsha Engineers International Limited, founded in 2010, is India’s largest manufacturer of precision bearing cages in terms of revenue in the organised sector. The firm is a subsidiary of the Harsha Group.
Customers in over 25 countries across five continents, including North America, Europe, Asia, South America, and Africa, purchase the company’s products.
Engineering division, which produces bearing cages (in brass, steel, and polyamide materials), complex and specialised precision stamped components, welded assemblies, and brass castings and cages and bronze bushings.
Solar EPC business, in which the company provides complete comprehensive turnkey solutions to all solar photovoltaic requirements as well as solar operations and maintenance services.
Harsha Engineers International was able to manufacture more than 7,205 bearing cages and 295 other products for customers in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, and renewables sectors as of September 30, 2021. Furthermore, over the last three years, the company’s product development and innovation centre has created over 1,200 different bearing types.
The company has five manufacturing facilities for engineering business, with two in Changodar and one in Moraiya, near Ahmedabad in Gujarat, India, and one in Changshu, China and Ghimbav Brasov, Romania.
Harsha Engineers International Limited has three wholly owned subsidiaries: one in China (Harsha Precision Bearing Components (China) Co. Ltd), one in the United States of America (HASPL Americas Corporation), one in the Netherlands (Harsha Engineers B.V.), and one in Romania (Harsha Engineers Europe SRL).
The proceeds of the new offering will be used to repay debt, fund working capital requirements for the purchase of machinery, repair and renovate existing production facilities, and for general corporate purposes. The company has five manufacturing facilities, with two of its main manufacturing facilities in Changodar and one in Moraiya, near Ahmedabad in Gujarat, India, and one manufacturing unit each in Changshu, China and Ghimbav Brasov, Romania, giving it access to customers in over 25 countries. This is the company’s second public offering. It is headquartered in Ahmedabad. In August 2018, it filed draught papers with the regulator.
Harsha Engineers’ revenue from operations increased by 51% in fiscal 2022 to Rs. 1,321 crore from Rs. 873 crore in fiscal 2021, while net profit increased to Rs. 91.9 crore in fiscal 2022 from Rs. 45 crore in fiscal 2021, owing primarily to an increase in revenue from operations from the engineering business and a reduction in the operating loss of the solar EPC business, as well as a gain due to exchange rate fluctuations.
Promoters of Harsha Engineers IPO
Rajendra Shah, Harish Rangwala, Vishal Rangwala, and Pilak Shah are the company promoters.