Harsha Engineers IPO to open on Sep 14; price band set at Rs 314-330/share

Harsha Engineers International, manufacturer of precision bearing cages, on Friday said it has fixed a price band of Rs 314-330 per share for its Rs 755-crore initial public offering (IPO).

The initial share-sale will open for public subscription on September 14, and conclude on September 16, the company announced.

The Rs 755-crore public issue consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer-for-sale (OFS) of up to Rs 300 crore by existing shareholders.

As a part of the OFS, Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah will offload shares.

The offer also includes a reservation for subscription by eligible employees.

Proceeds from the fresh issue to the tune of up to Rs 270 crore will be utilised for debt payment, up to Rs 76 crore for funding working capital requirements towards purchase of machinery, up to Rs 7.12 crore for infrastructure repairs and renovation of the existing production facilities and for general corporate proposes.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 45 equity shares and in multiples of 45 equity shares thereafter.

This is the Ahmedabad-based company's second attempt to go public. Earlier it had filed its draft papers with the regulator in August 2018.

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.

Harsha Engineers' revenue from operations increased by 51.24 per cent to Rs 1,321.48 crore for fiscal 2022, from Rs 873.75 crore for fiscal 2021, 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 running lead managers to the issue.