Harsha Engineers IPO: GMP rises ahead of issue opening for subscription this week
- Harsha Engineers IPO will open for public subscription on Wednesday, September 14, 2022
Harsha Engineers International's initial public offering (IPO) will open for public subscription this week on Wednesday, September 14, 2022 and the issue conclude on September 17. The price band has been fixed at ₹314-330 per share for its ₹755-crore initial share sale.
The IPO consists of a fresh issue of equity shares aggregating to ₹455 crore, and an offer-for-sale (OFS) of up to ₹300 crore by existing shareholders. As a part of the OFS, Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah will offload shares.
As per market observers, Harsha Engineers shares' premium (GMP) has risen to ₹220 in the grey market today from yesterday's ₹200. The company's shares are expected to list on leading stock exchanges BSE and NSE on Monday, September 26, 2022.
"The company's manufacturing facilities are positioned strategically, allowing them to serve the international markets effectively and economically. The company's top and bottom line growth appears to be fair. With a post-issue P/E ratio of roughly 32.70x based on FY22 results, the IPO looks reasonably priced," said Abhay Doshi, founder, UnlistedArena.com.
Proceeds from the fresh issue will be utilised for debt payment, funding working capital requirements towards purchase of machinery, infrastructure repairs and renovation of the existing production facilities and for general corporate proposes.
Half of the issue size has been reserved for qualified institutional investors, 35% for retail investors and the remaining 15% for non-institutional investors. Investors can bid for a minimum of 45 equity shares and in multiples of 45 equity shares thereafter.
Based in Ahmedabad, Harsha Engineers Harsha Engineers International Limited is a precision engineering company manufacturing bearing cages and stamped components. It has five manufacturing facilities with two of its principal manufacturing facilities at Changodar and one at Moraiya, near Ahmedabad in Gujarat in India, and one manufacturing unit each at Changshu, China and Ghimbav Brasov in Romania, which allow access to its customers in over 25 countries.
As of March 31, 2022, it has manufactured more than 7,205 bearing cages and more than 295 other products. In addition, over the past three years its product development and innovation center has developed more than 1,200 products in different bearing types.
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