Harsha Engineers shares list on NSE, BSE: Harsha Engineers made its D-street debut today. Shares of the company started trading on the NSE at Rs 450 per share, up 36 percent from the IPO price of Rs 314-330 per share and on the BSE the share debuted at Rs 444 per share, an increase of 35 percent.
The public issue of Rs 755 crore was bought 74.7 times by participants. The portion for qualified institutional buyers was subscribed 178.26 times, while the portion reserved for non-institutional investors was subscribed 71.32 times. The share of private investors was subscribed 17.63 times. Harsha Engineers International’s IPO included a new issue of Rs 455 crore and an Offer for Sale (OFS) of up to Rs 300 crore by shareholders and promoters.
The lot size of Harsha Engineers IPO was 45 shares. It means that an investor has to spend a minimum of Rs 14,850. A private retail investor can submit bids for up to 13 lots or 585 shares by spending Rs 1,93,050. The price band of Harsha Engineers IPO was set at Rs 314-330 per share band.
Axis Capital Limited, Equirus Capital Private Limited and JM Financial Consultants were the lead managers of the IPO.
Harsha Engineers is the largest precision bearing cage manufacturer, in terms of sales, in the organized sector in India, and one of the leading precision bearing cage manufacturers in the world. The company offers a diversified range of precision engineering products in different geographies and end-user sectors. The company supplies its products to customers in more than 25 countries on five continents, including North America, Europe, Asia, South America and Africa.
Motilal Oswal Financial Services noted in its report that Harsha Engineers with its dominant position is well placed to meet the growing demand for bearing cages in various industries. “We appreciate the increasing focus on other specialty precision components and on the growing EV segment, which could increase EBITDA margins,” analysts at Motilal Oswal Financial Services said. Harsha Engineers International Ltd is the largest precision bearing cage manufacturer, with a market share of 50-60 percent in the organized market. It offers a diversified range of precision engineering products in different geographies and end-user sectors. It operates under 2 business divisions – engineering business and solar EPC business.
What should investors do now?
Analysts appear optimistic about Harsha Engineers being dominant and well placed to benefit from growth in specialized precision components and demand for bearing cages across all sectors.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “Harsha Engineers Ltd. has made its debut at Rs. 450 or 36 percent above the issue price. The company’s good listing is due to excellent prospects and a phenomenal response The company’s strong fundamentals, competitive advantages such as high barriers to entry and switching costs, experienced management team, strategically located manufacturing facilities and robust growth prospects make this stock a strong candidate for long-term investment.Furthermore, the company is a proxy game on India to build the global manufacturing hub Those who have applied for quoted gains can maintain a stop-loss of Rs 400. Our recommendation to the investors is to hold the allocated shares and long-term investors can accumulate the shares on dips.”
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