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On 26th September 2022, bearing cages manufacturer Harsha Engineers shares listed on the Indian bourses as it made a bumper debut.
Here at Jobaaj, we discussed the details of the IPO of Harsha Engineers, which is India's largest manufacturer of precision bearing cages. IPO applicants were allotted their shares on 21st September.
The IPO was considered a huge success as investors flocked to apply for shares in the company. Especially QIBs, considering that the QIB portion of the IPO was oversubscribed a massive 178.26x times!! The HNI, Employees, and Retail portions were oversubscribed 71.32x, 12.07x & 17.63x times respectively, bringing the entire public issue to an oversubscription of 74.7x times!!
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The company also received the interest of anchor investors as it raised Rs 225.7 crores from 23 anchor investors and 17 domestic mutual funds ahead of the IPO.
American Funds Insurance Series Global Small Capitalization Fund, Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, PineBridge Global Funds – PineBridge India Equity Fund, Abu Dhabi Investment Authority-Monsoon, Whiteoak Capital, HDFC Mutual Fund, SBI Mutual Fund, Franklin Templeton India MF, UTI MF, SBI Life, Nippon India Mutual Fund, ICICI Prudential Mutual Fund, DSP Mutual Fund, ICICI Prudential Life Insurance & L&T Investment Management are some of the entities that participated in the anchor book.
Moreover, the grey market premium in the early hours today came in at Rs 150 per share. Experts had suggested that the share could list between Rs 480-500 per share, to give a listing gain of 45-50%.
The stock listed at Rs 450 per share, lower than suggested figures, and hit a low of Rs 430 per share in early trading hours, but picked up the pace shortly after. It closed at Rs 485.60 per share, up 47%!!
Investors who received allotment and had invested a sum of Rs 14,850 in the IPO (Rs 330 x 45 shares) managed to grow their investment by 47% to Rs 21,852 (Rs 485.60 x 45 shares) within a span of 10 days!
Brokerages are suggesting investors sell their holdings due to persisting market volatility but investors with higher risk appetites are recommended to maintain their position or book partial profits.
Article by Aman Agarwal.
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