Harsha Engineers IPO

Harsha Engineers International Limited is a premier engineering firm with a diverse product portfolio that spans continents and end-user sectors. Harsha Engineers IPO will hit the stock market in 14 September 2022.

About Harsha Engineers

Harsha Engineers Limited, the flagship company of the engineering business, was established in India in 1986. Their firm was recently renamed Harsha Engineers International Ltd after merging with its international operations.

With manufacturing sites in Asia (India and China) and Europe, it produces brass, steel, and polyamide cages and stamped components (Romania).

Their company’s market share in the Indian bearing cages market2 is believed to be approximately 50%, making it the biggest maker of quality bearing cages in the organised sector in India in terms of sales and one of the world’s top precision bearing cage producers.

In CY 2020, their firm held a 5.2 percent share of the global organised bearing brass, steel, and polyamide cages market.

Business Segments

They are the biggest producer of precision bearing cages in India in regards of revenue, and one of the globe ‘s top producers of precision bearing cages. (According to the CARE Advisory Report.) They provide a diverse range of precision engineering goods to customers in a variety of locations and sectors.

Their operations are divided into two categories: engineering, which produces bearing cages (in brass, steel, and polyamide materials), sophisticated and complex precision stamped components, welded assemblies, brass castings and cages, and bronze bushings; and solar EPC, which provides complete comprehensive turnkey solutions to all solar photovoltaic needs.

Automotive, railways, aviation & aerospace, construction, mining, agricultural, electrical and electronics, renewables, and other industries use their bearing cages.

Business Model

Harsha Engineers International Limited is a technology-driven company that has a great emphasis on reliability, design, and tool development, allowing them to create products that meet the needs of its clients.

They have the knowledge and experience to design and build advanced machinery in-house, allowing them to produce precise bearing cages and complicated and specialised precision stamped components.

Bearing cages are crucial components of bearings, and their fabrication necessitates the use of high-precision technology.

Their design and tool development section, which had 239 certified engineers (including solar EPC business) as of September 30, 2021, allows them to produce unique products and solutions, thanks to their years of expertise in bearing cages engineering.

Harsha Engineers IPO

Harsha Engineers International Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 755 Cr on 03 February 2022.

The offer includes a fresh issue of INR 455 crore and there is offer for sale (OFS) of 300 crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 90 crore in this issue.

They got the approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1077.66	981.07	973.24	195.00
Total Revenue	637.62	876.73	899.50	117.90
Profit After Tax	43.71	45.44	21.91	(27.41)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	9.09	5.88	3
Financial Year 2020	6.26	3.52	2
Financial Year 2019	(13.70)	(13.70)	1
Weighted Average	4.35	1.83
30 Sep. 2021	8.74	5.66

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are among the specific factors that go into determining the Offer Price:

• Offering a diverse array of precision engineering solutions throughout regions and end-user sectors, we are a complete solution provider.
• Long-term partnerships with high-profile clients.
• Domestic and international industrial facilities and storage in strategic locations.
• Tooling, design development, and robotics capability.
• Growth and financial success have been consistent in the past.
• A skilled workforce and a powerful, seasoned, and devoted senior management team.

Harsha Engineers International Comparison

S. No.	Face Value	Company Name	PE
1	10	Timken India Limited	104.49
2	10	SKF India Limited	65.36
3	10	Rolex Rings Limited	36.57
4	1	Sundaram Fasteners Limited	50.94

• All financial data for the listed sector peer referenced above is consolidated and derived from the listed peer’s annual audited financial reports for the fiscal year ending March 31, 2021.
• The P/E Ratio for listed peers was calculated using the closing market price of equity shares on the NSE website on January 21, 2022.

Harsha Engineers IPO Details

IPO Opening Date	14 September 2022
IPO Closing Date	16 September 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	INR 314 to 330 per equity share
Market Lot	45
Min Amount	INR 14850
Listing At	BSE, NSE
Issue Size	755 Crore
Fresh Issue	455 Crore
Offer for Sale	300 Crore

Harsha Engineers IPO Date

Harsha Engineers International IPO opening date is 14 September 2022, and the closing date is 16 September 2022. The Harsha Engineers International  issue may list in 26 September 2022.

IPO Opening Date	14 September 2022
IPO Closing Date	16 September 2022
Basis of Allotment Date	22 September 2022
Initiation of Refunds	22 September 2022
Credit of Shares to Demat Account	23 September 2022
IPO Listing Date	26 September 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Harsha Engineers International IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Harsha International IPO.

Harsha Engineers IPO GMP

Harsha Engineers IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2022
September 2022
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September 2022
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September 2022
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IPO Grey Market Premium

Harsha Engineers International IPO Review

Harsha Engineers International IPO review : if you are looking for answer to your question that Harsha Engineers IPO is good or bad than you can apply for this IPO with long term view.

Harsha Engineers International IPO Risk

1. The impact of the COVID-19 pandemic on their business, overall profitability, cash flows, and/or financial position will continue to be unclear and unpredictable.
2. They rely on a small number of client organizations for a large amount of their engineering company revenue.
3. For the execution of their clients’ requirements, they rely on their network of agents.
4. They are subject to a variety of rules, regulations, permissions, and licences that are required in the usual course of business, such as environmental, health, and safety requirements.
5. They just executed a business reorganisation, which may result in administrative and operational challenges.
6. The DRHP includes Proforma Consolidated Financial Information to represent the Scheme’s impact, but it is not predictive of their future financial status.

Other Threats

1. They are subject to variations in foreign currency exchange rates, which can have a negative impact on their results of operations.
2. Their finance arrangements place certain limitations on their operations, and failing to meet operational and financial covenants could harm their reputation.
3. Their inability to adequately diversify their engineering business’s product offerings could stifle their growth.
4. They lost money in the fiscal year 2019 and are likely to lose more money in the future.
5. They have certain contingent obligations that, if realised, could have a negative impact on their financial situation.
6. Their company and directors are engaged in ongoing legal battles. Any negative outcome in any of these proceedings could have a negative impact on their reputation.

Products

Their ability to create products that are tailored to their clients’ needs has resulted in strong and long-term customer relationships, which has allowed them to increase product margins and better manage competition.

Furthermore, thanks to their design, development, and technological expertise, they have been successful in broadening their product portfolio and improving their current processes in various kinds of bearing cages.

They’ve been able to produce 7,205 bearing cages and 295 other solutions for clients in the automotive, trains, aviation & aerospace, construction, mining, agriculture, electrical and electronics, and renewables sectors, allowing them to keep up with changing consumer demands.

Furthermore, its product development and innovation centre has generated over 1,200 products in various bearing kinds during the last three years.

Harsha Engineers International IPO Brokerage views

Here is the views of different stock brokers regarding this IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Harsha Engineers International IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
14 September 2022	1
15 September 2022	2
16 September 2022	3

Management

They are part of the Harsha Group, which was founded in 1986 and has been in the engineering business for almost 35 years. Harsha Engineering International Limited, formerly Harsha Abakus Solar Private Limited, was founded in 2010.

A corporate restructuring was recently completed in order to integrate the Harsha Group’s India engineering and solar EPC business, which would take effect on April 1, 2020.

Harish Rangwala and Rajendra Shah, their founding Promoters, have over 35 years of expertise in the precision engineering and bearing cages production industries and have been instrumental in their invention, success, and expansion.

Vishal Rangwala and Pilak Shah, their second generation Promoters, are also engaged in the general operations, strategy, and business.

Promoters

• Harish Rangwala
• Rajendra Shah
• Pilak Shah
• Vishal Rangwala

Promoter’s Holding

Pre Issue Share Holding	57.43%
Post Issue Share Holding

Harsha Engineers International Prospectus