Harsha Engineers IPO: The Initial Public Offering , or IPO, of Harsha Engineers International, a manufacturer of precision bearing cages, will open on September 14, which is next week. The initial share-sale will close for public subscription on September 16, the company has announced. Harsha Engineers International is the largest manufacturer of precision bearing cages, in terms of revenue, in organsied sector in India, and amongst the leading manufacturers of precision bearing cages in the world. Here are key things you need to know about the Harsha Engineers IPO.
– Harsha Engineers IPO price band has been fixed at Rs 314-330 per share band of Rs 314-330 per share for its maiden public issue, which will remain open for subscription till Friday, 16 September. The company plans to raise Rs 755 crore through this IPO. The anchor book will open on Tuesday, 13 September.
– The Rs 755-crore public issue consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer-for-sale (OFS) of up to Rs 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.
– The company has reserved 50 per cent of the offer for qualified institutional buyers (QIB), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 45 equity shares and in multiples of 45 equity shares thereafter. The offer also includes a reservation for subscription by eligible employees.
– Proceeds from the fresh issue of the Harsha Engineers IPO to the tune of up to Rs 270 crore will be utilised for debt payment, up to Rs 76 crore for funding working capital requirements towards purchase of machinery, up to Rs 7.12 crore for infrastructure repairs and renovation of the existing production facilities and for general corporate proposes.
– Harsha Engineers’ revenue from operations increased by 51.24 per cent to Rs 1,321.48 crore for fiscal 2022, from Rs 873.75 crore for fiscal 2021, while profit after tax doubled to Rs 91.94 crore for fiscal 2022, from Rs 45.44 crore for fiscal 2021. Axis Capital, Equirus Capital and JM Financial are the book running lead managers to the issue.
– This is the Ahmedabad-based company’s second attempt to go public. Earlier it had filed its draft papers with the regulator in August 2018.
– Harsha Engineering was founded by Rajendra Shah and Harish Rangwala in 1986. The promoters hold 99.7 percent of the company’s equity. It offers a diverse suite of precision engineering products across geographies and end-user industries, including automotive, aviation and aerospace, railways, construction, mining, renewable energy, agriculture and other industrial sectors, the DRHP said.
– Harsha Engineers International 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.