The initial public offering (IPO) of Harsha Engineers International Ltd, will open for bidding on 14 September. The precision bearing cages manufacturer has set a price 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. Axis Capital, Equirus Capital and JM Financial are the lead managers to the issue. The shares of the company were trading in the grey market at a premium of Rs 140-150 a share, according to experts.
The IPO consists of a fresh issue of Rs 455 crore and an offer for sale (OFS) of up to Rs 300 crore by shareholders and promoters. As part of the OFS, Rajendra Shah is looking to offload shares worth up to Rs 66.75 crore, Harish Rangwala up to Rs 75 crore, Pilak Shah up to Rs 16.50 crore, Charusheela Rangwala up to Rs 75 crore and Nirmala Shah up to Rs 66.75 crore. Investors can make a bid for a minimum of 45 equity shares and in multiples thereafter. The company is offering a discount of Rs 31 per equity share to its eligible employees.
Up to 50 per cent of the total offer is reserved for qualified institutional buyers, and 15 per cent for non-institutional investors. The remaining 35 per cent stake is allocated to the retail investors. The IPO shares are likely to be credited to successful allottees’ demat accounts on September 23 and the company is expected to make its market debut on September 26. According to the RHP, a sum of Rs 270 crore from the fresh issue will be used for paying debt, Rs 77.95 crore for purchasing machinery and Rs 7.12 crore for infrastructure repairs and renovation of the existing facilities and general corporate proposes.
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. The company claims to have a 50 per cent market share in the organised segment of the Indian bearing cages market and a 5.2 per cent market share in the global organised bearing cages market for brass, steel and and polyamide cages as of the year 2020.
The company recorded a profit of Rs 91.94 crore on revenue of Rs 1321.48 crore for the year ended March 2022. Net debt for the period stood at Rs 356.59 crore, up from Rs 322.08 crore in the year-ago period.