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Business News/ Markets / Rs 755 crore Harsha Engineers IPO opens tomorrow; Key things to know
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Rs 755 crore Harsha Engineers IPO opens tomorrow; Key things to know

The IPO of Harsha Engineers International Limited will open for subscription on Wednesday, September 14 and close on September 16. Read further to know more

Harsha Engineers IPO (MINT_PRINT)Premium
Harsha Engineers IPO (MINT_PRINT)

The initial public offering of Harsha Engineers International will open for subscription tomorrow i.e., Wednesday, September 14 and the issue will close on September 16.

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.

Company Overview

Harsha Engineers International was incorporated in 2010. It is the largest manufacturer of precision bearing cages, in terms of revenue in the organised sector in India. The company is a part of the Harsha Group.

It supplies its products to customers in over 25 countries covering five continents. The business comprises two segments — engineering business and solar EPC business.

Listing Details

The company has fixed the IPO price band at Rs 314-330 per share for the Rs 755 crore initial share offer.

50% 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.

IPO Timeline

EventIndicative Date
IPO opening dateSeptember 14, 2022
IPO closing dateSeptember 16, 2022
Basis of allotmentSeptember 21, 2022
Initiation of refundsSeptember 22, 2022
Credit of shares to dematSeptember 23, 2022
IPO listing dateSeptember 26, 2022

Objective of Issue

The net 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 purposes.

Company Financials

Here is a quick look at the financial performance of Harsha Engineers over the last three years:

 

Particulars

(Amount in ₹ lakhs)

31 March 202031 March 202131 March 2022
Total assets973.24981.071158.25
Total revenue899.5876.731339
Profit after tax21.9145.4491.94
Net worth378.02433.22527.9

Company Strengths

The company is a comprehensive solution provider offering a diversified suite of precision engineering products across geographies and end-user industries. It also has long-standing relationships with leading clientele.

It has expertise in tooling, design development and automation. The company has a consistent track record of growth and financial performance. Also has a strong, experienced and dedicated senior management team and qualified workforce.

Risks Involved

The company has an unrelated business of solar EPC which has been merged with the company as a part of reorganisation. Any incremental investment in the solar EPC business may dilute the blended margin of the company.

The company’s revenue is highly dependent on a few large customers. Any adverse development or significant reduction in business from these customers may adversely affect Harsha’s financial condition.

As per market observers, Harsha Engineers shares are commanding a premium (GMP) of ₹212 in the grey market today.

IPOs are the first issues of the stakes of a company whereas FPOs are generally the additional issues.
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IPOs are the first issues of the stakes of a company whereas FPOs are generally the additional issues.

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ABOUT THE AUTHOR
Deepika Chelani
A business media enthusiast. She covers personal finance beat for LiveMint.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 13 Sep 2022, 02:59 PM IST
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