Harsha Engineers IPO GMP Subscription Status today: The initial public offering (IPO) of Harsha Engineers International, a manufacturer of precision bearing cages, which got fully subscribed within hours of opening earlier this week, was subscribed 74.70 times on the final day, according to the data available on the National Stock Exchange (NSE).
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The Rs 755 crore offer received bids for nearly 125.97 crore (1,25,96,90,175) shares against the issue size of nearly 1.69 crore (1,68,63,795) shares, the data showed.
The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 178.26 times, while the portion for non institutional investors was subscribed 71.32 times and that of retail individual investors (RIIs) was subscribed 17.63 times, the data showed. Apart from them, the employees’ segment was subscribed 12.07 times.
Harsha Engineers IPO 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, Harish Rangwala (up to Rs 75 crore), Rajendra Shah (up to Rs 66.75 crore), Pilak Shah (up to Rs 16.5 crore), Charusheela Rangwala (up to Rs 75 crore) and Nirmala Shah (up to Rs 66.75 crore) will offload shares.
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The net proceeds from the fresh issue will be utilised for pre-payment or scheduled repayment of a portion of the existing borrowing availed by our company, funding capital expenditure requirements towards purchase of machinery, infrastructure repairs and renovation of our existing production facilities including office premises in India and general corporate purposes.
The 3-day IPO opened for subscription on Wednesday, September 14, 2022, and concluded at 5 pm today. It has a price band of Rs 314-330 per share.
Right before the start of the IPO, Harsha Engineers International raised over Rs Rs 225.74 crore (Rs 2,25,74,82,150) from 23 anchor investors.
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Harsha Engineers International is the largest manufacturer of precision bearing cages in India (brass/steel/polyamide) with 50-60 per cent market share in the organized market. It is also one of the leading players globally with market share of 6.5 per cent for brass, steel and polyamide cages in CY21 (forming 75 per cent of global bearing cage requirement). It caters to each of the top six global bearing companies and derives 75 per cent revenue from this segment.
Going ahead, investors will now look forward to the share allotment date of the issue. The finalisation of the basis of allotment for Harsha Engineers International is expected to take place on Wednesday, September 21, 2022, as per the information provided in the red herring prospectus (RHP).
