Harsha Engineers Ltd IPO

 

Opening Date

14, September 2022

Closing Date

16, September  2022

Refund Initiation

22, September 2022

Listing Date

26, September 2022

Face Value

₹10 per equity share

IPO Price Band

₹300 to ₹330 per equity share

Minimum Order Quantity

45 Shares

Issue Size

₹755 Cr

 

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)


Particulars

As of and for the FY ended on March 31st

2022

2021

2020

Equity Share Capital

77

50

50

Networth

528

433

378

Total Borrowings

385

357

419

Revenue from Operations

1,321

874

886

EBITDA

187

125

100

Profit/(Loss) After Tax

92

45

22

Earnings Per Share

11.9

5.8

3.5

RoCE

25%

17%

18%

RoE

19%

11%

6%

Net Assets Value Per Share (in Rs)

68.3

86.6

75.6

 

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.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!

It’s all easy. It’s all good.

 

 

  • Open your FREE Demat Account in 5 Minutes
+91|
Select State
Select City
By submitting your details, you are authorising us to call you or send promotional communication even though you may be registered under DND
angle-up