Harsha Engineers IPO

Closed DRHP

IPO Subscription Details

  • Open Date 14 Sep
  • Close Date 16 Sep
  • Lot Size 45
  • IPO Size ₹ 755.00 Cr
  • IPO Price Range ₹ 314 to ₹330
  • Min Investment ₹ 14130
  • Listing Exchange NSE, BSE
  • Basis of Allotment 21 Sep
  • Refunds 22 Sep
  • Credit to Demat Account 23 Sep
  • Listing Date 26 Sep

Harsha Engineers IPO Subscription Status

Date QIB NII Retail TOTAL

14-Sep-22

0.06x 5.83x 3.22x 2.87x

15-Sep-22

1.63x 24.91x 9.14x 10.35x

16-Sep-22

1.78.26x 71.32x 17.63x 74.70x

 

IPO Synopsis

Harsha Engineers International, a manufacturer of precision bearing cages, IPO issue is opening on 14th September and closing on 16th September. 
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, aggregating the total issue size to Rs. 755 crores.
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.
The lot size is fixed at 45 shares per lot while the price band ranges between Rs. 314 – 330 per share. The shares will be allotted on 21st September and the issue will list on 26th September.  
Axis Capital Limited, Equirus Capital Private Limited and JM Financial Limited are the book running lead managers of Harsh Engineers IPO.   

Objective of Harsh Engineers IPO

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.

Harsh Engineers IPO Videos

About Harsha Engineers

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.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY22 FY21 FY20
Revenue 1339 873.8 885.9
EBITDA 186.5 125.0 100.1
PAT 91.94 45.4 21.9
Particulars (in Rs. Crores) FY22 FY21 FY20
Total Assets 1158.25 981.1 973.2
Share Capital 77.2 50.0 50.0
Total Borrowings 384.9 356.7 419.1
Particulars (in Rs. Crores) FY22 FY21 FY20
Net cash generated from / (used in) operating activities 36.5 121.16 112.91
Net cash from / (used in) investing activities -51.8 -19.96 -64.57
Net cash flow from / (used in) financing activities 3.7 -92.43 -38.25
Net increase (decrease) in cash and cash equivalents -11.6 8.77 10.08

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%


IPO 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

IPO FAQs

What is the lot size, minimum and maximum investment required for the Harsha Engineers IPO?

The lot size of the Harsha Engineers IPO is 45 shares per lot. A retail investor can make a minimum investment of Rs. 14850 (1 Lots at Rs. 330) and a maximum of Rs. 1,93,050 (13 lots at Rs. 330).

What is the price band of the Harsha Engineers IPO?

The price band is set at Rs. 314 on the lower band and Rs. 330 on the upper band.

When does the Harsha Engineers issue open and close?

The issue opens on 14TH September and closes on 16th September.

What is the size of Harsha Engineers IPO issue?

The Harsha Engineers IPO issue comprises 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.

Who are the promoters/key personnels of Harsha Engineers?

Promoters of Harsha Engineers include Sandeep Rajendra Shah, Harish Rangwala, Vishal Rangwala and Pilak Shah.

What is the allotment date of Harsha Engineers?

The allotment date is 21st September.

What is the Harsha Engineers listing date?

The IPO will be listed on 26TH September.

Who are the book runners for Harsha Engineers IPO?

Axis Capital Limited, Equirus Capital Private Limited and JM Financial Limited are the lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used as follows:
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

How to apply for the Harsha Engineers IPO?

To apply for the Harsha Engineers IPO, follow the steps given below

•    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

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