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Opening Date
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14, September 2022
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Closing Date
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16, September 2022
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Refund Initiation
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22, September 2022
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Listing Date
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26, September 2022
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Face Value
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₹10 per equity share
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IPO Price Band
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₹300 to ₹330 per equity share
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Minimum Order Quantity
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45 Shares
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Issue Size
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₹755 Cr
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The month of August 2022, saw a couple of IPOs getting listed in the secondary market. These were Syrma SGS Technologies Ltd and DreamFolks Services Ltd. Both IPOs performed exceptionally, giving more than 40% listing gains to investors. Not only this, but the retail subscription for these IPOs saw an overwhelming response, reflecting the market sentiments that are currently the bull rally. After the Tamilnad Mercantile Bank’s IPO, which received a whopping 6.48 times subscription from retail investors, all eyes are now aimed at Harsha Engineers Ltd, which is going live with its IPO on 14th September. Let’s learn in detail all its financials and if this IPO is worth investing in or not!
About Harsha Engineers Ltd
Harsha Engineers Ltd, is India’s largest manufacturer of precision bearing cages, in terms of revenue. Incorporated in the year 2010, the decade old company is a part of Harsha Group. The company’s customer base is located over 25 countries, covering five continents such as North America, Europe, Asia, South America and Africa.
The company operates in two segments:- mainly in Engineering, wherein it manufactures bearing cages, complex and specialized precision stamped components, welded assemblies and brass castings and cages.
The second operational segment deals in providing comprehensive turnkey solutions to all solar photovoltaic requirements and provides operations and maintenance services in the solar sector.
The company operates in the fields of automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics and renewables sectors. 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 and one in the Netherlands-Harsha Engineers B.V.
Below mentioned are the financials of the company for the last three years. (in crores)
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Particulars
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As of and for the FY ended on March 31st
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2022
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2021
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2020
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Equity Share Capital
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77
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50
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50
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Networth
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528
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433
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378
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Total Borrowings
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385
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357
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419
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Revenue from Operations
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1,321
|
874
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886
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EBITDA
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187
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125
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100
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Profit/(Loss) After Tax
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92
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45
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22
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Earnings Per Share
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11.9
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5.8
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3.5
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RoCE
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25%
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17%
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18%
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RoE
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19%
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11%
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6%
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Net Assets Value Per Share (in Rs)
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68.3
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86.6
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75.6
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Harsha Engineers Ltd details -
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Harsha Engineers Ltd date and its share price.
Harsha Engineers Ltd date -
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from September 14 and will be available for subscription until September 16, 2022.
Harsha Engineers Ltd issue size -
The total issue size of the latest Harsha Engineers Ltd is declared to be ₹755 crores. The IPO is a mix of Fresh Issue of ₹455 Crs and an Offer for Sale (OFS) of ₹300 Crs.
50% of the offer is for QIBs (qualified institutional buyers), 35% for retail investors, and the balance 15% for NIBs (non-institutional investors).
Harsha Engineers Ltd share price
The price band of the company’s upcoming IPO is declared to range between ₹314 to ₹330 per equity share
Harsha Engineers Ltd listing
Since the IPO of Harsha Engineers Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
Harsha Engineers Ltd objectives
The net proceeds of the Issue, i.e. gross proceeds of the Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:
- Pre-payment or scheduled repayment of a portion of the existing borrowing availed by the Company;
- Funding capital expenditure requirements towards purchase of machinery;
- Infrastructure repairs and renovation of our existing production facilities including office premises in India; and
- General corporate purposes
Harsha Engineers Ltd Strengths
- Diversified product portfolio with presence in 25 countries;
- Long standing relationships with leading key global bearing manufacturers;
- Strategically located domestic and international production facilities and warehouses;
- Expertise in Tooling, design development and automation;
- Consistent track record of growth and financial performance.
Harsha Engineers Ltd risks
- Derives nearly 71% of revenue from Top 5 customer groups as on FY22;
- Unsecured loan of Rs 73.5 cr, 19% of the total borrowings; and
- Volatility in Foreign exchange rates.
Conclusion
If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.
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