Harsha Engineers IPO Last day to register: The IPO of Harsha Engineers International opens for registration on Wednesday 14 September and closes on Friday 16 September. The applicants should also note that the closing time for acceptance of the UPI mandate is Friday, September 16, 2022, until 5:00 PM, the last day of the IPO. If they do not, their application cannot be processed. The tender offer received offers for 17,45,50,545 shares against 1,68,63,795 shares that were tendered, according to data available from the NSE.
Harsha Engineers IPO: Subscription Status
The Non-Institutional Investor category was subscribed 24.91 times, while the Retail Investor (RII) part was subscribed 9.14 times. The Qualified Institutional Buyers (QIBs) quota has been subscribed to 1.63 times.
Harsha Engineers IPO: About the Subscription
The initial public offer (IPO) of Rs 755 crore has a new issue of up to Rs 455 crore and a sell offer of up to Rs 300 crore.
The price range for the offer has been set at Rs 314-330 per share.
The proceeds of the new issuance amounting to up to Rs 270 crore will be used for debt payment, up to Rs 76 crore to finance working capital requirements for the purchase of machinery, up to Rs 7.12 crore for infrastructure repairs and renovation of existing production facilities and for general business proposals.
Harsha Engineers IPO: Key Risks
Motilal Oswal and Religare stated in their reports that the main risk for HEIL is that it depends on a limited number of customers for revenue. HEIL will derive nearly 71 percent of revenue from the five largest customer groups as of FY22. The company also has an unsecured loan of Rs 73.5 crore, which is 19 percent of its total loans, Motilal Oswal said.
Furthermore, according to Religare, the price volatility of commodities can affect the HEIL margins.
Harsha Engineers IPO: appreciation
“HEIL’s highest price is Rs 330 – it is valued at 27.7 times its fiscal 2022 profit of Rs 11.9 which we believe is reasonable compared to its peers,” said Arihant Capital, with a ‘subscribe’ call on the flotation. Religare has a neutral call on the HEIL IPO.
Harsha Engineers IPO: GMP Today
According to market observers, the shares of Harsha Engineers are available today at a premium (GMP) of Rs 232 in the gray market. The company’s shares are expected to be listed on the leading stock exchanges BSE and NSE on Monday, September 26, 2022.
Harsha Engineers IPO: Should You Buy?
LKP Securities, said: “HEI has built a strong relationship with its customers, who are the world’s leading bearing makers in various industries. The bearing cage market is concentrated globally with top 6 players holding 54 percent market share in FY22. As of March 31, HEIL delivered to each of these six companies. The company’s 10 largest customers have contributed 45-48 percent of total revenue over the past 3 fiscal years. It also has a long-standing relationship with its customers.”
At the top end of the Rs 330 price range, it is valued at 27.7x earnings for FY22, which is quite reasonable compared to its competitors, it added.
Religare Broking gives the public offering a neutral assessment and expects the company to benefit from an increase in outsourcing of bearing cages by international companies. It estimates that the global market will grow at a CAGR of 6-8 percent over 2021-2029. In addition, the company plans to strengthen its market leadership in the bearing segment and capture opportunities in the automotive EV segment, which has good growth potential.
The company has five manufacturing facilities, with two of its main manufacturing facilities in Changodar and one in Moraiya, near Ahmedabad in Gujarat, and one manufacturing facility in Changshu, China, and Ghimbav Brasov in Romania, providing access to its customers in more than 25 countries.
Axis Capital, Equirus Capital and JM Financial are the managers of the offering.
Disclaimer: The expert opinions and investment tips contained in this News18.com report are their own and not the website’s or its management. Users are advised to contact certified experts before making any investment decisions.
Read all Latest business news and Important news here