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 1,25,96,90,175 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 74.7 times on the final day of bidding.
The qualified institutional buyer portion was subscribed 178.26 times. The reserved portion of non-institutional investors witnessed a subscription of 71.32 times. Retail Investors saw a robust demand and was subscribed 17.63 times. The employee portion was subscribed 12.07 times.
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.
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.
The Ahmedabad-based company offers a 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, brass castings and cages & bronze bushings; and solar EPC business, under which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.