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The IPO of Harsha Engineers is on its way to the market as it will open for subscribers on 14th September.
Harsha Engineers International Limited is a certified engineering company that is engaged in the production of Bearing cages and Stamped components. It currently manufactures Brass, Steel, and Polyamide Bearing Cages & Stamped Components.
Bearing cages are used to hold rolling elements in the appropriate orientation to avoid them from grouping together. The company's products are used in automotive, aviation and aerospace, railways, construction, mining, renewable energy, agriculture, and other industrial sectors, according to the company's DRHP.
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The company began operation in 1986. It is currently India's largest manufacturer of precision bearing cages and is among the leading manufacturers of the same globally with a market share of around 5-6%. It also has a solar division called Harsha Abakus since 2010 which provides solar solutions.
The company filed its DRHP with the markets regulator early in February 2022 wherein the company planned to raise Rs 755 crores. The same was approved by SEBI in May 2022, after failing the first time in August 2018.
The IPO will open on the 14th of September and stay open for subscription till the 16th. A price band of Rs 314-330 per share has been set as the issue size is set at Rs 755 crores. The anchor book for this issue will open on the 13th of September. The issue consists of a fresh issue of Rs 455 crores and an OFS of Rs 300 crores.
In 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.
An investor gets 45 shares in a lot, bringing the price of a single lot to Rs 14,850. Eligible employees will be receiving a discount of Rs 31 per share. 50% of the issue is reserved for QIBs, 35% for HNIs & the balance for retail investors. Share allotment and listing are expected to happen on 23rd and 26th September respectively.
The proceeds from the issue will be utilized towards repayment of debt worth Rs 270 crores, purchase of machinery worth Rs 77.95 crore, repair and renovation of existing facilities costing around Rs 7 crores & general corporate purposes.
Axis Capital, Equirus Capital & JM Financial are the lead managers of the issue.
Article by Aman Agarwal.
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