Harsha Engineers shares rally for second day post strong market debut

Shares of Harsha Engineers International Ltd rallied for the second straight day on Tuesday after making a strong market debut in the previous session. The stock gained more than 5% to ₹506 apiece on the BSE in early deals.

Harsha Engineers shares on Monday ended over 47% higher against the issue price of ₹330 apiece. The company's shares made their debut at ₹444, reflecting a jump of 34.5% against its IPO issue price on the BSE. During the day, it rallied 60% to ₹527.6.  

“The company’s good listing can be attributed to outstanding prospects and a phenomenal response from the investors. The company’s strong fundaments, competitive advantages like high entry barriers and switching costs, experienced management team, strategically located manufacturing facilities and robust growth outlook makes this stock a strong candidate for long-term investing. Further, the company is a proxy play on India becoming the global manufacturing hub. Our recommendation for the investors is to hold the allotted shares and long-term investors can accumulate the stock on dips,” said Santosh Meena, Head of Research at Swastika Investmart.

The Initial Public Offer (IPO) of Harsha Engineers International got subscribed 74.70 times, led by strong demand from institutional buyers, on the last day of subscription that closed on Friday. The public issue received bids for 125.96 crore shares against 1.68 crore shares on offer, according to a data with the NSE.

The initial share sale of up to ₹755 crore had a fresh issue of up to ₹455 crore and an offer for sale of up to ₹300 crore. The price range for the offer was at ₹314-330 a share.

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 which allow access to its customers in over 25 countries.

Harsha Engineers International Ltd is the largest manufacturer of precision bearing cages, with 50-60% market share in the organized market. It operates under 2 business divisions - engineering business and solar EPC business.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.