Harsha Engineers IPO: Offer absolutely subscribed inside hours of opening; all you could know

Harsha Engineers IPO Price, GMP, Review, Details: The preliminary public providing (IPO) of Harsha Engineers International, a producer of precision bearing cages, opened for subscription on Wednesday, September 14, 2022, and was oversubscribed inside a couple of hours on the primary day of bidding.

The subject opened for public subscription at 10 am and was subscribed 1.64 occasions as of two:36 pm. It obtained whole bids for two,76,14,745 shares throughout each the inventory exchanges towards 1,68,63,795 shares on supply, knowledge from National Stock Exchange (NSE) confirmed.

The Rs 755 crore Harsha Engineers IPO shall be obtainable for subscription until Friday, September 16, 2022, and the worth band of the corporate has been mounted at Rs 314-330 per share.

Harsha Engineers IPO consists of a contemporary subject of fairness shares aggregating to Rs 455 crore, and an offer-for-sale (OFS) of as much as Rs 300 crore by present shareholders. As part of the OFS, Harish Rangwala (as much as Rs 75 crore), Rajendra Shah (as much as Rs 66.75 crore), Pilak Shah (as much as Rs 16.5 crore), Charusheela Rangwala (as much as Rs 75 crore) and Nirmala Shah (as much as Rs 66.75 crore) will offload shares, in keeping with the knowledge offered within the purple herring prospectus (RHP).

The web proceeds from the contemporary subject shall be utilised for pre-payment or scheduled reimbursement of a portion of the prevailing borrowing availed by our firm, funding capital expenditure necessities in direction of buy of equipment, infrastructure repairs and renovation of our present manufacturing services together with workplace premises in India and common company functions.

Harsha Engineers International is the biggest producer of precision bearing cages in India (brass/metal/polyamide) with 50-60 per cent market share within the organized market. It can also be one of many main gamers globally with market share of 6.5 per cent for brass, metal and polyamide cages in CY21 (forming 75 per cent of world bearing cage requirement). It caters to every of the highest six world bearing firms and derives 75 per cent income from this section.

The firm has 5 manufacturing services with two of its principal manufacturing services at Changodar and one at Moraiya, close to Ahmedabad in Gujarat in India, and one manufacturing unit every at Changshu, China and Ghimbav Brasov in Romania, which permit entry to its prospects in over 25 international locations.

Half of the problem measurement of Harsha Engineers IPO has been reserved for certified institutional patrons (QIBs), 15 per cent for non-institutional traders and the remaining 35 per cent for retail traders.

Investors who want to subscribe to Harsha Engineers IPO can bid in loads of 45 fairness shares and multiples thereafter. At the higher value band, they are going to be shelling out Rs 14,850 to get a single lot of Harsha Engineers International. The shares shall be listed on each BSE and NSE.

The candidates additionally should observe that the cut-off time for UPI mandate acceptance is Friday, September 16, 2022, upto 5:00 pm, the final day of IPO bidding. If they fail to take action then their utility will not be thought of.

Axis Capital, Equirus Capital and JM Financial are the book-running lead managers to the supply whereas Link Intime India is the registrar of the problem.

Before heading into the IPO, the Ahmedabad-based firm on Tuesday raised over Rs 225.74 crore (Rs 2,25,74,82,150) from 23 anchor traders in lieu of 68,40,855 fairness shares at Rs 330 every, knowledge from the inventory exchanges confirmed.

The anchor traders embrace Whiteoak Capital Funds, Goldman Sachs Funds, HDFC MF, SBI MF, UTI MF, SBI Life Insurance Company, Abu Dhabi Investment Authority, Nippon Life India MF, ICICI Prudential MF, L&T MF and ICICI Prudential Life Insurance Company amongst others.

The analysis groups at IIFL Securities, Motilal Oswal Financial Services, Geojit Financial Services and LKP Securities of their respective IPO notes have given a “Subscribe” score to the supply.

IIFL Research in its IPO observe stated, “At the upper price band of ₹330, Harsha Engineers International Limited is demanding a P/E multiple of ~20.5X based on FY22 earnings while the company’s price to sales ratiois at 2.27X of FY22 revenue. The industry average PE multiple is of 50.98X of FY22 revenue. Considering ~60% market share in the organized segment of the Indian bearing cages market, long standing relationship with clientele, expertise in tooling, design development and automation, plans to strengthen its technological leadership, and focus on increasing operational efficiencies, we recommend ‘SUBSCRIBE’ to the issue with a long term perspective.”

Motilal Oswal Financial Services in its reserch report famous, “HEIL with its dominant position is well placed to capture the growing bearing cage demand across industries. We like its increasing focus on other specialized precision components and on the growing EV segment which could boost its EBITDA margins. It is valued at 32.7x FY22 P/E which is at par with itslisted peers. Given growth recovery in auto/auto ancillary and strong momentum in the midcaps, we expect the IPO to do well. We suggest investors to Subscribe for listing gains.”

The share allotment is prone to happen on Wednesday, September 21, 2022, and the shares are anticipated to be listed on Monday, September 26, 2022, in keeping with the timeline given within the RHP.