Harsha Engineers IPO- The IPO for Ahmedabad-based Harsha Engineers International Limited will begin accepting subscriptions on September 14, 2022. In terms of income, Harsha Engineers is the nation’s top producer of precise bearing cages. Each year, the company’s revenues and margins get better. Should you buy into the IPO of Harsha Engineers? What potential risks exist with this IPO? We will give a thorough analysis of Harsha Engineers International Limited IPO Review in this article.
About Harsha Engineers International Limited
In India’s structured economy, the company is the biggest producer of precision bearing cages in terms of revenue. It is also one of the top producers of precision bearing cages worldwide.The business provides a broad range of precision engineering products for application in various regions and end-user sectors.
Its operations include:
1- engineering company, under which they produce complex and specialised precision stamped components, welded assemblies, brass castings, cages, and bronze bushings, as well as bearing cages (in brass, steel, and polyamide materials).
2-They offer full, comprehensive turnkey solutions for all solar PV requirements through their Solar EPC business.
In India’s structured economy, the company is the biggest producer of precision bearing cages in terms of revenue. It is also one of the top producers of precision bearing cages worldwide.The business provides a broad range of precision engineering products for application in various regions and end-user sectors.
The company holds a 50–60% market share in the organised bearing cages industry in India and a 6.5% market share in the global bearing cages market for polyamide, steel, and brass cages. They provide a variety of bearing cages.
Open your Investment Account with DHAN – Click Here
Harsha Engineers IPO – Dates, Issue details, Size and Price Band
| IPO Opening Date | 14-Sep-22 |
| IPO Closing Date | 16-Sep-22 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 10 per equity share |
| IPO Price band | Rs 314 to Rs 330 per equity share |
| Lot Size | 45 Shares |
| Min Order Quantity | 45 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 755 Crores |
| Fresh issue | Rs. 455 Crores |
| OFS | Rs. 300 Crores |
Tamilnad Mercantile Bank IPO – Should you Invest or Avoid?
Strengths of Harsha Engineers in the marketplace
1) The company offers a diverse range of precision engineering products across regions and end-user sectors as a full-service solution provider.
2) It has a history of working with prestigious clients.
3. It has production facilities and warehouses that are both domestically and internationally based.
4) The business possesses experience in automation, design, and tooling.
5) The business has a track record of steady development and financial performance.
6) It has a capable staff and a strong, seasoned, and committed senior management team.
What Purposes Does the IPO Offer Pursue?
The total size of the Harsha Engineers IPO, which consists of a new issuance and an offer for sale (OFS), is Rs 755 crores.
1- Offer for Sale (OFS) for Rs. 300 Crores: Under this option, shareholders who wish to sell their shares do so without the company benefiting in any way.
2- A new issue worth Rs. 455 crores: The following uses would be made of the Fresh revenues from the offer:
(a) The prepayment or scheduled payback of a portion of the company’s current loan.
(b) Covering the necessary capital expenditures for the purchase of machinery.
(c) Renovating existing production facilities, including office space, and fixing the country’s infrastructure.
(d) Overarching company objectives.
How is the company financial track record?
Here are the total assets, revenues and profits of the company in the last 4 years.
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY19 | FY20 | FY21 | FY22 |
|---|---|---|---|---|
| Total Assets | 195.0 | 973.2 | 981.1 | 1,158.3 |
| Revenues | 117.9 | 899.5 | 876.7 | 1,339.0 |
| Profit After Tax | -27.4 | 21.9 | 45.4 | 91.9 |
| Profit % | -23.25% | 2.44% | 5.18% | 6.87% |
Performance Indicators of Harsha Engineers Vs. its peers for FY2022
The main reasons for investing in Harsha Engineers IPO are listed below.
1) Harsha Engineers International Limited is one of the largest manufacturers in the world and the leading organised sector producer of precision bearing cages in India.
2) The company has a wide range of precision engineering products spanning geospatial and end-user industries, and it has a long history of working with prestigious clients.
3) Over the past four years, the company has had good revenue growth. From Rs. 117.9 crores in FY19 to Rs. 1,339 crores in FY22, its revenues increased.
4) The margins have improved significantly. It had a loss of Rs. 27.4 crores in FY19 as opposed to a profit of Rs. 91.9 crores in FY22. Its profits as a percentage of sales have been rising each year.
Risks or Negative Elements of the Harsha Engineers IPO
1) The offer’s objectives are Offer for Sale (OFS). The selling stockholders would receive these proceeds, and the corporation would not profit from this.
2) The company’s average return on equity is 19%, while that of its rivals ranges from 22% to 29%.
3) The current COVID-19 outbreak has affected the world economy and India, and its effects on corporate operations are unknown and difficult to forecast.
4) The company’s engineering business revenue is largely dependent on a small range of customer groups. Any decline in these clientele could have a negative effect on the company.
5) The company relies on its network of agents to meet the needs of its clients. A company’s business may suffer if it is unable to maintain its ties with its agents.
6) Company recently completed a corporate re-org, as a result of which it might experience operational and administrative challenges.
7) Because the company exports its goods, there is a risk associated with currency fluctuations.
8) Before investing in this IPO, investors should carefully consider the risk factors listed in the RHP.
Harsha Engineers IPO Dates – Subscription, Allotment and Listing Dates
| Offer Open | 14-Sep-22 |
| Offer close | 16-Sep-22 |
| Finalization of Allotment | 21-Sep-22 |
| Initiation of Refunds | 22-Sep-22 |
| Credit to Demat Account | 23-Sep-22 |
| IPO Shares Listing Date | 24-Sep-22 |
Harsha IPO GMP today as per leading experts is in the range of Rs 220 per share. You can follow our facebook page for daily updates on GMP – Click here
Check You tube Video on Harsha Engineers IPO – Click Here
Harsha Engineers IPO Review – Should you Invest or not?
Harsha Engineers International Limited is the largest manufacturer of precision bearing cages in India and amongst the world.In the previous four years, the company produced good sales growth. Annual improvements can be seen in company margins. It has a reasonable issue price. Investors can participate in this initial public offering (IPO) over the medium- to long-term horizon taking into account all of the aforementioned positive and negative considerations.
Open your Demat account with Below Brokers
– 
– 
– 
– 