Precision bearing cages manufacturer Harsha Engineers International's Rs 755 crore initial public offering (IPO) will open for subscription on September 14 and will conclude on September 16. The IPO price band has been fixed at Rs 314-330 per share.
The offer would also include reservations for subscriptions by eligible employees. Half of the total issue size has been reserved for qualified institutional investors, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
As part of the public offer, new equity shares worth Rs 455 crore will be issued and existing shareholders will offer their shares for sale worth Rs 300 crore. As a part of the offer-for-sale (OFS), Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah will offload shares.
The company has said that up to Rs 270 crore of the proceeds from the fresh issue will be used for debt payment and Rs 76 crore for working capital requirements for the purchase of machinery, and up to Rs 7.12 crore for infrastructure repair and renovation of existing production facilities and general corporate purposes.
Harsha Engineers' revenue from operations increased by 51.24 percent to Rs 1,321.48 crore for fiscal 2022, from Rs 873.75 crore in the previous fiscal, while profit after tax doubled to Rs 91.94 crore for fiscal 2022 from Rs 45.44 crore for fiscal 2021. Axis Capital, Equirus Capital, and JM Financial are the book run.
Founded in 1986, Harsha Engineers is one of the largest manufacturer of precision bearing cages in the organised segment in India. The company has a market share of five percent to six percent in the organised segment of the global brass, steel, polyamide bearing cages in terms of revenue.
The company has five manufacturing facilities with two of its principal manufacturing facilities at Changodar and one at Moraiya, near Ahmedabad in Gujarat in India, and one manufacturing unit each at Changshu, China and Ghimbav Brasov in Romania, which allow access to its customers in over 25 countries.
This is the Ahmedabad-based company's second attempt to go public. The company had earlier filed its draft papers with the regulator in August 2018.
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First Published: Sept 13, 2022 4:24 PM IST
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