Harsha Engineers IPO up for grab: From latest GMP to price band, all you need to know

The shares of Harsha Engineers International are likely to be listed on BSE and NSE stock exchanges on September 26, 2022.

Mumbai: Harsha Engineers International's initial public offering (IPO), through which the company is planning to raise Rs 455 crore, is up for grabs. The company's Grey market premium or GMP has jumped around 40 per cent- from Rs 150 on Friday to Rs 212 on Wednesday, according to dealers. The IPO will be available for subscription till September 16. The Ahmedabad-based company also aims to raise up to Rs 300 crore through an offer for sale (OFS) by its existing shareholders.

IPO Price Band and Listing
The price band for Harsha Engineers International has been fixed at Rs 314-330 per share for its cumulative Rs 755-crore initial share sale. The shares of precision bearing cages manufacturers are likely to be listed on BSE and NSE stock exchanges on September 26, 2022.

Utilisation of Funds

The company has said that it will be using the proceeds from the share sale for debt payment, meeting working capital requirements like the purchase of machinery, infrastructure repairs and renovating existing production facilities.

The company has also reserved shares to the tune of Rs 2.5 crore for its employees. The firm will provide a discount of Rs 31 per share from the final offer price to its employees.

Option for Investors
Those willing to get a pie of this offering will have to bid for a minimum of 45 equity shares and then in multiples of 45 shares. The minimum investment amount for a retail investor stands at Rs 14,850 per lot, and the maximum at Rs 1,93,050 for 13 lots as one can invest up to Rs 2 lakh in public issues.

Company Background
Rajendra Shah and Harish Rangwala founded Harsha Engineers International Ltd in 1986. Now, Shah and his wife Nirmala Shah will offload their shares worth Rs 66.75 crore each while Rangwala and his wife Charusheela Rangwala will sell shares worth Rs 75 crore each through an offer for sale. Rajendra Shah's son Pilak Shah will be selling shares worth Rs 16.5 crore.

Harsha Engineers registered a growth of 51.2 per cent in revenue at Rs 1,321.48 crore from operations in FY22 compared to FY21. Their profits during the period increased by 102 per cent to Rs 91.94 crore.

The company has said that its EBITDA margin dropped to 12.8 per cent in FY22 from 13.9 per cent in FY21 due to higher input costs.

(With PTI inputs)