Stock Market

Harsha Engineers IPO to open next week; grey market premium is already at ₹150 per share

  • The initial public offering (IPO) of the Ahmedabad-based manufacturer of precision bearing cages is all set to open from September 14 to September 16.
  • The company plans to raise ₹755 crore through this IPO consisting of fresh issue of equity shares worth ₹455 crore and offer for sale by promoters of up to ₹300 crore.
  • The company’s profit grew by over four times in the last three financial years.

The initial public offering (IPO) of Ahmedabad-based Harsha Engineers International, which manufactures precision bearing cages, is set to open on September 14 and close on September 16.

The company plans to raise ₹755 crore through this IPO consisting of fresh issue of equity shares worth ₹455 crore and offer for sale by promoters of up to ₹300 crore.

The company’s business comprises two segments – engineering business and solar EPC business. Its engineering business manufactures bearing cages in brass, steel and polyamide materials; complex and specialised precision stamped components; welded assemblies and brass castings, among others.

Its solar EPC business provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.

The company supplies its products to over 25 countries across five continents i.e., North America, Europe, Asia, South America and Africa.

The company’s profit grew by over four times in the last three financial years.

Particulars Revenue Profit
FY22 ₹1,339 crore ₹91 crore
FY21 ₹876 crore ₹45 crore
FY20 ₹899 crore ₹21 crore

Money raised through the IPO will be utilised for debt payment, funding capital expenditure, purchase of machinery, infrastructure repairs and renovation of the existing production facilities, and for general corporate purposes.

The grey market premium (GMP) of the company’s shares are already at ₹150 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

Here are some of the important details of the IPO:

 

Issue details
Price band ₹314-₹330
IPO open date September 14
IPO close date September 16
Allotment date September 21
Initiation of refunds September 22
Credit of shares to demat account September 23
IPO listing date September 26
Minimum lot 45

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