Ahmedabad-based Harsha Engineers International Limited ("The Company") has fixed the price band at ₹314 to ₹330 per Equity Share for its maiden public offer. The initial public offering ("IPO" or "Offer") of the Company will open on Wednesday September 14, 2022, for subscription and close on Friday, September 16, 2022. Investors can bid for a minimum of 45 Equity Shares and in multiples of 45 Equity Shares thereafter.
The offer consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer for sale of up to Rs 300 crore by existing shareholders.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
Harsha Group was established in the year, 1986 by founder, promoters Harish Rangwala and Rajendra Shah, both having more than 35 years of experience in the precision engineering and bearings cages manufacturing sector that primarily operates in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewable energy, and other industrial sectors.
The Company offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter. It has approximately 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in CY 2020. It also manufactures complex and specialised precision stamped components, welded assemblies, brass castings and cages & bronze castings and bushings.
The Ahmedabad-based company offers diversified suite of precision engineering products across geographies and end-user industries, which comprises of engineering business, under which it manufactures bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings; and solar EPC business, under which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.
As of March 31, 2022, has manufactured more than 7,205 bearing cages and more than 295 other products. In addition, over the past three years its product development and innovation centre has developed more than 1,200 products in different bearing types.
The company has five strategically located 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 helps it to penetrate global markets more efficiently and in a cost effective manner and allow access to its customers in over 25 countries covering five continents i.e., North America, Europe, Asia, South America and Africa.
Harsha Engineers' revenue from operations increased by 51.24% to Rs 1321.48 crore for fiscal 2022 from Rs 873.75 crore for fiscal 2021, primarily due to increase in its revenue from operations from engineering business, while profit after tax has increased by 102.35% to Rs 91.94 crore for fiscal 2022 from Rs 45.44 crore for fiscal 2021, primarily due to increase in the revenue from operations from the engineering business and reduction in the operating loss of solar EPC business as well as gain on account of exchange rates.
Axis Capital Limited, Equirus Capital Private Limited, and JM Financial Limited are the book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.