The Initial Public Offering (IPO) of Harsha Engineers International Ltd (HEIL), the largest manufacturer of precision bearing cages, in terms of revenue, in organised sector in India, and among the leading manufacturers of precision bearing cages in the world, received bids of 17,45,50,545 shares against the offered 1,68,63,795 equity shares, at a price band of ₹314-330, according to the data available on the stock exchanges. Overall the issue was subscribed 10.35 times on the first day of bidding.
The reserved portion of non-institutional investors witnessed a subscription of 24.91 times. Retail Investors saw a robust demand and was subscribed 9.14 times. The employee portion was subscribed 6.34 times. The qualified institutional buyer portion was subscribed 1.63 times. The issue kicked off for subscription on Wednesday, September 14, and will be open till Friday, September 16.
Major brokerage firms like ICICI, LKP Securities, Motilal Oswal, and Ventura Securities have rated Harsha Engineering International Ltd (HEIL), the biggest organised sector producer of precision bearing cages in India, as "Subscribe." HEIL currently enjoys ~ 50-60% domestic market share and ~6-7% international market share.
HEIL is anticipated to profit from the rising outsourcing trend in the bearing sector backed by its diverse array of precision engineering products, 4 strategically placed production locations, and competence in tooling, design development, and automation. The market for bearing cages is anticipated to develop at a CAGR of 6-8% between 2021 and 2029, with India's market likely to grow at an 8.3% rate.
Going forward, the company is expanding its product portfolio to introduce sand-casting; value-added stamping components, bronze bushings, etc, to cater to more end user industries such as wind, mining and shipping sectors.
Axis Capital Limited, Equirus Capital Private Limited, and JM Financial Limited are the book-running lead managers to the issue, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
Harsha Group was established in the year, 1986 by founder, and 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, cages & bronze castings, and bushings.