Shares of Harsha Engineers International on Monday made a stellar debut on the bourses, listing at Rs 444 apiece on the BSE, a premium of 34.5% over the issue price. The shares hit a high of Rs 527 during intraday trade before settling at Rs 485.9 apiece on the BSE, up 47% over the issue price.
The total quantity traded on the NSE stood at 3.61 crore shares, while 24.9 lakh shares changed hands on the BSE.
The initial public offering (IPO) of Harsha Engineers with a price band of Rs 314-330 was subscribed 74.7 times. The offer consisted of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer for sale of up to Rs 300 crore by existing shareholders.
The company had raised Rs 225.7 crore from anchor investors.
Harsha Engineers International, incorporated in 2010, is the largest manufacturer of precision bearing cages, in terms of revenue, in the organised sector in India, and among the leading manufacturers of precision bearing cages globally. It has 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in CY2021.
The company reported a net profit of Rs 92 crore and net sales of Rs 1,321 crore in the twelve months ended March 31, 2022.
“The company has long-standing relationships with its customers, which are leading global bearing manufacturers in the automotive, railways, aviation and aerospace, construction, mining, agriculture, electrical and electronics and renewables sectors. At the offer price of Rs 330, the stock trades at a P/E valuation of 32.7x its FY2022 post-IPO diluted EPS. Given the company’s strong market share in the bearing case market and strong relationships with its customer, the company’s growth prospects look promising,” brokerage Sharekhan said in its pre-IPO note.