IPO Synopsis
Harsha Engineers International, a manufacturer of precision bearing cages, has filed preliminary papers with SEBI to raise funds worth Rs.755 crores through IPO.
The public issue consists of a fresh issue of equity shares worth Rs.455 crores, and an offer for sale (OFS) of up to Rs.300 crores by existing shareholders.
The OFS participants include Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah.
The offer includes a reservation for subscriptions by eligible employees.
Axis Capital Limited, Equirus Capital Private Limited and JM Financial Limited are the book running lead managers to the issue.
Objective of the Issue
Proceeds from the fresh issue will be utilized in the following manner:
1. Rs.270 crores for debt payment
2. Rs.77.95 crores for funding working capital requirements towards the purchase of machinery
3. Rs.7.12 crore for infrastructure repairs and renovation of the existing production facilities and general corporate proposes
About Harsha Engineers International Ltd
Harsha Engineers International, Ahmedabad based company, is the largest manufacturer of precision bearing cages, in terms of revenue, in organized sector in India, and amongst the leading manufacturers of precision bearing cages in the world. The company manufactures complex and specialised precision stamped components, welded assemblies, brass castings and cages & bronze castings and bushings.
The company’s products cater to sectors including automotive, aviation & aerospace, railways, construction, mining, renewable energy, agriculture and other industrial sectors, and offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter.
The company commands approximately 50% of the market share in the organised segment of the Indian bearing cages market and 5.2% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in 2020.
It is also an EPC service provider in the solar photovoltaic industry and also provides operations and maintenance services in the solar sector with over 10 years of operating history in the solar EPC business.
The company has five manufacturing facilities with two of its principal facilities at Changodar and one at Moraiya, near Ahmedabad in Gujarat, and one manufacturing unit each at Changshu in China and Ghimbav Brasov in Romania, which allow access to its customers in over 25 countries in North America, Europe, Asia, South America and Africa.
Harsha Engineers International Ltd Financial Status
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 873.8 | 885.9 | 122.5 |
| EBITDA | 125.0 | 100.1 | -27.5 |
| PAT | 45.4 | 21.9 | -27.4 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 981.1 | 973.2 | 195.0 |
| Share Capital | 50.0 | 50.0 | 20.0 |
| Total Borrowings | 356.7 | 419.1 | 122.4 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 121.16 | 112.91 | 29.63 |
| Net cash from / (used in) investing activities | -19.96 | -64.57 | 14.91 |
| Net cash flow from / (used in) financing activities | -92.43 | -38.25 | -55.47 |
| Net increase (decrease) in cash and cash equivalents | 8.77 | 10.08 | -10.93 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Harsha Engineers International Limited | 876.7 | 9.09 | 86.64 | NA | 10.5% |
| Timken India Limited | 1430.1 | 19.03 | 178.61 | 104.49 | 10.7% |
| SKF India Limited | 2707.0 | 60.2 | 316.31 | 65.36 | 19.0% |
| Rolex Rings Limited | 619.8 | 36.26 | 148.76 | 36.57 | 24.4% |
| Sundaram Fasteners Limited | 3671.7 | 17.1 | 111.7 | 50.94 | 15.3% |
The key points are-
Key Points
-
Strengths
1. Comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries
2. Long standing relationships with leading clientele
3. Strategically located domestic and international production facilities and warehouses
4. Expertise in Tooling, design development and automation -
Risks
1. Depend on a limited number of customer groups for a significant portion of its revenue from engineering business
2. Inability to maintain relationships with its network of agents for fulfilment of needs of the customers or deficiency in the service provided by such agents may adversely affect the business
3. Any failure to obtain, renew or comply with necessary regulatory approvals and licenses may adversely affect the operations
4. The company and certain of its subsidiaries have unsecured loans that may be recalled by the lenders at any time
5. It also has certain contingent liabilities, which, if they materialize, may adversely affect the financial condition
How to apply for an IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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FAQs
Harsha Engineers International IPO details are yet to be announced.
Harsha Engineers International IPO details are yet to be announced.
Harsha Engineers International IPO details are yet to be announced.
The IPO consists of a fresh issue of equity shares worth Rs.455 crores, and an offer for sale (OFS) of up to Rs.300 crores.
Harsha Engineers International is promoted by Rajendra Shah, Harish Rangwala, Vishal Rangwala, and Pilak Shah.
Harsha Engineers International IPO details are yet to be announced.
Harsha Engineers International IPO details are yet to be announced.
Axis Capital Limited, Equirus Capital Private Limited and JM Financial Limited are the book running lead managers to the issue.
The proceeds from the issue will be used in the following manner:
1. Rs.270 crores for debt payment
2. Rs.77.95 crores for funding working capital requirements towards the purchase of machinery
3. Rs.7.12 crore for infrastructure repairs and renovation of the existing production facilities and general corporate proposes
To apply for the IPO, follow the steps given below
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app
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