Harsha Engineers, which is a manufacturer of precision bearing cages, is going to launch its initial public offering (IPO) in the coming week. The public offer will be opened for public subscription on September 14 and close on September 16. Harsha Engineers International plans to raise Rs 755 crore through this IPO. Here are the key details of the IPO.
Harsha Engineers IPO: Issue Size and Price Band
The company plans to raise Rs 755 crore through the IPO. It consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer-for-sale (OFS) of up to Rs 300 crore by existing shareholders. As a part of the OFS, Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah will offload shares.
The price band of Harsha Engineers IPO has been fixed at Rs 314-330 per share.
Harsha Engineers IPO: Key Dates
Harsha Engineers IPO will remain open between September 14 and September 16. However, the anchor book will open on September 13. The allotment date will be September 21, while the date for the initiation of refunds will be September 22. The shares will be credited into the demat account of subscribers on September 23 and the company will witness listing on September 26.
Harsha Engineers IPO Quota
The company has reserved 50 per cent of the offer for qualified institutional buyers (QIB), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 45 equity shares and in multiples of 45 equity shares thereafter. The offer also includes a reservation for subscription by eligible employees.
Harsha Engineers IPO’s Objectives
The company proposes to utilise the net proceeds towards the following objects:
(a) Pre-payment or scheduled repayment of a portion of the existing borrowing availed by our Company.
(b) Funding capital expenditure requirements towards purchase of machinery.
(c) Infrastructure repairs and renovation of our existing production facilities including office premises in India.
(d) General corporate purposes.
Harsha Engineers IPO: Company Details
Harsha Engineers International was incorporated in 2010 and is the largest manufacturer of precision bearing cages, in terms of revenue in organised sector in India. The company is a part of the Harsha Group. It supplies its products to customers in over 25 countries covering five continents i.e., North America, Europe, Asia, South America and Africa.
The business comprises of two segments — engineering business and solar EPC business. As of September 30, 2021, Harsha Engineers International have been able to manufacture more than 7,205 bearing cages and more than 295 other products for customers in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics and renewables sectors.
In the March 2022 quarter, the company’s profit after tax stood at Rs 91.94 crore. Its total revenue stood at Rs 1,339 crore, while its net worth was Rs 527.9 crore. Harsha Engineers’ total assets at the end of the March 2022 quarter was Rs 1,158.25 crore.
Harsha Engineers’ revenue from operations increased by 51.24 per cent to Rs 1,321.48 crore for fiscal 2022, from Rs 873.75 crore for fiscal 2021, while profit after tax doubled to Rs 91.94 crore for fiscal 2022, from Rs 45.44 crore for fiscal 2021.