Harsha Engineers International, manufacturers of bearing cages and other ancillary products, plans to raise Rs 755 crore through initial public offering (IPO). The subscription for the IPO will open on September 14 and end on September 16, 2022.
The IPO consists of fresh issue of shares worth Rs 455 crore and Offer For Sale (OFS) of shares worth Rs 300 crore. The price band is fixed at Rs 314-330 per equity share. The face value of the shares is Rs 10 apiece.
Harsha Engineers International Limited is the largest manufacturer of precision bearing cages, in terms of revenue, in India’s organised sector. The company has approximately 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% of market share in the global organised bearing cages market for brass, steel and polyamide cages in calendar year 2021, according to its red herring prospectus.
The company has two business verticals – engineering business and solar EPC business. Under engineering business, the company manufactures bearing cages in brass, steel and polyamide materials, specialised precision stamped components, welded assemblies and brass castings as well as cages & bronze bushings. Under its solar EPC business, the company provides comprehensive turnkey solutions to all solar photovoltaic requirements.
Harsha Engineers International offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter and their bearing cages are used in automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewables industry.
The company has four manufacturing facilities for their engineering business with their principal manufacturing facilities at Changodar, another facility in Moraiya, Gujarat, one manufacturing unit each at Changshu, China and Ghimbav Brasov in Romania. Further, it has three wholly-owned subsidiaries in China, the US and the Netherlands.
The company’s top five customer groups have contributed 70.55%, 72.28%, and 72.54% out of its total revenue from operations in FY22, FY21 and FY20, respectively. In FY22, the manufacturer’s operating revenue from engineering business in international markets was 63.31% of the total operating revenue, while operating revenue from India stood at 30.41%. The company supplies its products to customers present in over 25 countries spread across five continents.
- Comprehensive solution provider with diversified suite of precision engineering products across geographies and various industries.
- Well-established relationships with leading clients present across different countries.
- Strategically located domestic and international manufacturing facilities and warehouses.
- Expertise in tooling, design development and automation.
- Consistent track record of revenue growth and financial performance.
- Experienced and dedicated senior management team and qualified workforce.
For period ended
Revenue from operations
Return on Average Equity
* All numbers are in INR crore except percentage
Purpose of the IPO
The company plans to use the net proceeds from fresh issue of shares for the following purposes:
- Pre-payment or repayment of a portion of the company’s borrowing aggregating to Rs 270 crore.
- Funding of capital expenditure requirements towards purchase of machinery totalling Rs 77.95 crore.
- Expense towards infrastructure repairs and renovation of its existing production facilities including office premises in India aggregating to Rs 7.116 crore.
- General corporate purposes.
Further, the proceeds from offer for sale will be shared among selling shareholders.
Rajendra Shah, Harish Rangwala, Vishal Rangwala and Pilak Shah are the promoters of the company.
Subscription Start Date
Sep 14, 2022
Subscription End Date
Sep 16, 2022
Rs 10 per equity share
Rs 314 to Rs 330 per share
Rs 755 crore
Rs 455 crore
Offer For Sale
Rs 300 crore
Book Built Issue IPO
IPO Lot Size
Retail Investors (Minimum)
Retail investors (Maximum)
Small HNI (Minimum)
Small HNI (Maximum)
Large HNI (Minimum)