HEI IPO will hit Dalal street on 14 September 2022. the company aims for an issue size of ₹755.00 Cr through this IPO. Harsha Engineers IPO will close on 16 September 2022.
HE International Ltd
Harsha Engineers is the largest manufacturer of precision bearing cages in the organized sector in India in terms of capacity and operations and has a global market share of approximately 5-6% in the organized segment of the global brass, steel, and polyamide bearing cages market in terms of revenue.
The company holds more than 50% of the market share in the Indian bearing cages market in the organized segment for brass, steel, and polyamide cages. It manufactures bearing cages in brass, steel, and polyamide materials with sizes of up to 2,000 mm in diameter for automotive and industrial applications. Harsha Engineers also manufactures complex and specialized precision stamped components for automotive and industrial customers.
The company’s principal production facilities are at Changodar and Moraiya, near Ahmedabad in Gujarat in India, while it also has production facilities in other low-cost locations such as Changshu and Suzhou in China and Ghimbav Brasov in Romania. The combined bearing cages capacity at all its manufacturing units is 1,016.27 million pieces per annum and for semi-finished brass, castings are 35,376 million tonnes per annum. The company has entered into arrangements to stock inventory in warehouses spread across more than 15 locations across the world including in, Europe, the US, China, and South America.
Major Competitive Strengths
- Strong, experienced, and dedicated senior management team and qualified workforce.
- Expertise in Tooling, design development, and automation.
- Long-standing relationships with leading clientele.
- Consistent track record of growth and financial performance.
- Strategically located domestic and international production facilities and warehouses.
- Comprehensive solution provider offering a diversified suite of precision engineering products across geographies and end-user industries.
Objects of the Issue
- Infrastructure repairs and renovation of our existing production facilities including office premises in India.
- Pre-payment or scheduled repayment of a portion of the existing borrowing availed by our Company.
- Funding capital expenditure requirements towards the purchase of machinery.
- General corporate purposes.
Basic details about the company
| Full name | Harsha Engineers International Ltd |
| Sector | Capital Goods |
| Industry | Engineering – Industrial Equipments |
| Company Website | www.harshaengineers.com |
Dates to remember
| IPO Opening date | 14 September 2022 |
| IPO Closing | 16 September 2022 |
| Basis of Allotment | 21 September 2022 |
| Initiation Refunds | 22 September 2022 |
| Credit to Demat Account | 23 September 2022 |
| Listing Date | 26 September 2022 |
IPO details
| Issue type | Book Building Issue |
| IPO issue size | ₹₹755 Cr |
| Fresh Issue | ₹455 Cr |
| Offer for sale | ₹300 Cr |
| Face value | ₹10 per equity share |
| Price band | ₹314 to ₹330 per equity share |
| Retail Allocation | 10% |
| Lot size | 45 Shares |
| Minimum application | 1 Lot-45 Shares |
| Maximum application | 13 Lots- 585 Shares |
| Listing Exchange | BSE & NSE |
Harsha Engineers IPO Lot Size & Application amount
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 45 | ₹14,850 |
| Retail (Max) | 13 | 585 | ₹193,050 |
| S-HNI (Min) | 14 | 630 | ₹207,900 |
| S-HNI (Max) | 67 | 3,015 | ₹994,950 |
| B-HNI (Min) | 68 | 3,060 | ₹1,009,800 |
Harsha Engineers Financial Performance
| FY2019 | FY2020 | FY2021 | H1 FY2022 | |
| Revenue | 122.5 | 885.9 | 873.8 | 629.5 |
| Expenses | 156.5 | 867.9 | 816.0 | 578.8 |
| Net income | (27.4) | 15.5 | 50.6 | 44.0 |
| Margin (%) | (22.4) | 1.7 | 5.8 | 7.0 |
Harsha Engineers Valuations & Margins
| FY2019 | FY2020 | FY2021 | |
| EPS | 13.51 | 3.52 | 5.88 |
| PE ratio | – | – | 56.12 |
| RONW (%) | 18.75 | 5.80 | 10.49 |
| ROCE (%) | (79) | 13 | 17 |
| EBITDA (%) | (22.4) | 11.3 | 14.3 |
| Debt/Equity | 86.95 | 1.13 | 0.83 |
| NAV | – | – | 86.64 |
Company Promoters
- Rajendra Shantilal Shah
- Harish Ranjit Rangwala
- Vishal Rangwala
- Pilak Rajendra Shah
- Munjal Rangwala
Harsha Engineers IPO Promoter Holding
| Pre Issue Share Holding | 99.70% |
| Post Issue Share Holding |
Lead Manager(s)
- Axis Capital Limited
- Equirus Capital Private Limited
- JM Financial Consultants Private Limited
Harsha Engineers Offer Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: harshaengineers.ipo@linkintime.co.in
Website: www.linkintime.co.in
Harsha Engineers Contact Details
Harsha Engineers Limited
NH-8A, Sarkhej- Bavla Highway,
Changodar, Ahmedabad 382213,
Gujarat, India
Phone: +91 2717-618200
Email: sec@harshaengineers.com
Website: https://www.harshaengineers.com
Harsha Engineers IPO Allotment Status
Harsha Engineers IPO allotment will be available on Link Intime’s website.
Click on this link to get allotment status.
Final thoughts
Harsha Engineers IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
