Harsha Engineers Shares End At 46.3% Premium To IPO Price On Debut
The stock listed at Rs 444 apiece on the BSE, a premium of 34.5% to its IPO price of Rs 330 apiece.
Shares of Harsha Engineers International Ltd. gained on listing after its initial public offering was subscribed 74.65 times.
The stock of the Ahmedabad-based precision bearing cage manufacturer listed at Rs 444 apiece on the BSE, a premium of 34.5% to its IPO price of Rs 330 apiece. On the National Stock Exchange, the stock debuted at Rs 450, a 36.36% premium.
The shares rose around 39% over its IPO price to trade at Rs 459.10 during early trade. The stock ended at Rs 482.85, a premium of 46.3% to the IPO price.
The Rs 755-crore IPO, which opened for subscription on Sept.14, was fully subscribed on its first day, while it was subscribed 10.35 times on the second day.
According to the red herring prospectus, the initial share sale included a fresh issue worth Rs 455 crore and an offer for sale of 90 lakh shares, aggregating to Rs 300 crore by the promoter group. The offer comprised 25.13% of the post-issue equity capital of the company.
Harsha Engineers also kept Rs 2.5 crore worth of shares reserved for subscription by its employees.
The company said it will utilise the net proceeds from the IPO to pay off its existing debt worth Rs 270 crore. It will also direct Rs 77.95 crore towards capital expenditure to purchase machinery and Rs 7.12 crore for infrastructure and renovation works.
Harsha Engineers International, maker of precision bearing cages, was incorporated in 2010. The company makes brass, steel and polyamide cages along with complex and specialised precision-stamped components.
The company offers a wide range of bearing cages, with the diameter ranging from 20 mm to 2,000 mm, to sectors such as automotive, railways, aviation and aerospace, construction, mining, agriculture, electrical and electronics and renewable sector, among others.
Harsha also provides turnkey solutions to solar photovoltaic requirements through its solar EPC business.