| IPO date | 14 Sep 2022 – 16 Sep 2022 |
| Listing date | 26 Sep 2022 |
| Price range | 314 – 330 |
| Minimum order quantity | 45 |
| (D)RHP | View |
The company Harsha Engineers Limited produces precision bearing cages. It provides a broad range of precision engineering products for various end-user industries and geographical markets.
Harsha Engineers is active in two industry sectors:
Bearing cages, intricate and unique precision stamped components, welded assemblies, brass castings, cages, and bronze bushings are all produced by the engineering company.
The company’s solar EPC (Engineering, Procurement, and Construction) division offers complete turnkey solutions for all solar photovoltaic needs.
Customers can purchase the company’s goods in over 25 nations across five continents: North America, Europe, Asia, South America, and Africa. And as of CY 2020, the company owned 5.2% of the market share and about 50% of the market share in the organised section of the Indian bearing cages industry.
Harsha Engineers hopes to raise up to Rs. 755 crores through the public offering. The issue consists of a new equity share issue of up to Rs. 455 crores and an offer for sale of equity shares worth Rs. 300 crores from current shareholders.
Financial Snapshot
| Financial Year Ended | Revenue (₹ Crores) | PAT (₹ Crores) | EPS (₹) |
| March 2019 | 117.91 | -27.41 | -13.7 |
| March 2020 | 899.51 | 21.909 | 3.52 |
| March 2021 | 876.73 | 45.439 | 5.88 |
| September 2021 | 637.63 | 43.707 | 5.66 |
IPO Schedule
| Issue Period | 14th September to 16th September 2022 |
| Finalization of Allotment | 21st September 2022 |
| Initiation of Refunds | 22nd September 2022 |
| Credit of Shares | 23rd September 2022 |
| Date of Listing | 26th September 2022 |
| Mandate end date | 2nd October 2022 |
| Anchor Investors Lock-In End Date | 16th October 2022 |
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
Highlights of the Harsh engineers international
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.
Competitive Analysis/ Market Peers
FAQS
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).
The issue opens on 14TH September and closes on 16th September.
Promoters of Harsha Engineers include Sandeep Rajendra Shah, Harish Rangwala, Vishal Rangwala and Pilak Shah.
The IPO will be listed on 26TH September.
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
The price band is set at Rs. 314 on the lower band and Rs. 330 on the upper band.
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.
How do I apply to the Harsh engineers international?
You can apply for the Harsh engineers internationa IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account.
Where can I find the Harsh engineers international IPO's allotment status?
You can check the allotment status for the Harsh engineers internationa IPO on the website of the Registrar and Transfer agent.
Alternatively, you can also check the allotment status on the NSE website.