Harsha Engineers International's IPO to raise up to Rs 755 crore was subscribed an overall 2.9 times on Wednesday, the first day of the bidding process. The IPO of Ahmedabad-based precision bearing cage manufacturer Harsha Engineers is a combination of fresh issuance of shares worth up to Rs 455 and an offer for sale (OFS) by existing shareholders. Bidding will conclude on Friday, September 16.
By the end of the day, the Harsha Engineers public offer received bids for 4.8 crore shares as against the total 1.7 crore shares on offer, according to provisional exchange data.
Harsha Engineers' is the fourth initial share sale to hit Dalal Street within a little over a month, following the primary market offerings of Syrma SGS, DreamFolks and Tamilnad Mercantile Bank.
Harsha Engineers CEO Vishal Rangwala told CNBC-TV18 the company is an indirect supplier to Tesla and Tata Motors in the electric vehicle segment. The contribution of two- and three-wheeler contribution to the segment is in single digits, he said.
"Through our customers, we supply to the EV market... We are supplier to our customer in the US which in turn supplies to Tesla. Similarly, in India, we supply to our customer who in turn supplies to Tata Motors and the EV segment. For us, two-wheeler, three-wheeler and passenger vehicle are a very small market even within automotive," he said.
The company sees large potential in its EPC business and expects its solar EPC business to break even this year, he added.
Harsha Engineers commanded a premium of Rs 210 in the grey market — or an unofficial market for unlisted securities — ahead of the launch of the IPO, dealers said. (Check out what grey market suggests |
Potential investors can bid for Harsha Engineers shares under the IPO within a price range of Rs 314-330 apiece in multiples of 45. That makes one lot of Harsha Engineers shares worth Rs 14,130-14,850 for bidding.
Harsha shares are likely to debut on stock exchanges BSE and NSE on September 26.
Many brokerages recommend subscribing to the Harsha Engineers IPO. Motilal Oswal, for instance, suggests subscribing to the issue for listing gains.
Harsha Engineers is "demanding an EV/sales multiple of 2.2 times, which is at a discount to a peer average of 5.6 times... The issue is attractively priced," according to Choice Broking.
Here's what other brokerages make of the IPO:
| Brokerage | Recommendation |
| Motilal Oswal | Subscribe for listing gains |
| Ventura Securities | Subscribe |
| Angel One | Subscribe |
| Choice Broking | Subscribe |
| Arihant Capital | Subscribe for long term |
| BP Wealth | Subscribe for long term and for listing gains |
| LKP Securities | Subscribe |
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(Edited by : Sandeep Singh)
First Published: Sept 14, 2022 12:08 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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