Harsha Engineers International IPO Subscribed 10.35 Times On Day 2
The demand for Harsha Engineer's International Ltd.'s IPO was led by non-institutional and retail investors on its second day.
The demand for Harsha Engineer's International Ltd.'s initial public offering was led by non-institutional and retail investors on second day of subscription as well.
The Rs 755 crore IPO, which opened for subscription on Wednesday, was fully subscribed on the first day.
According to the company's red herring prospectus, the initial share sale comprises fresh stock worth Rs 455 crore and an offer for sale of 90 lakh shares aggregating to Rs 300 crore by the promoter group.
Harsha Engineers also reserved Rs 2.5 crore worth of shares for subscription by its employees.
The issue together will comprise 25.13% of the post-issue equity capital of the company. At the upper end of the price band of Rs 314-330, the company is valued at Rs 3,007 crore.
The Ahmedabad-based precision bearing cage manufacturing firm will use Rs 270 crore from the net proceeds from the IPO to repay its existing debt. Along with that, it will also direct Rs 77.95 crore towards capital expenditure required to buy machinery and Rs 7.12 crore towards infrastructure and renovation works.
Harsha Engineers International is an engineering company that was incorporated back in 2010. The company manufactures brass, steel and polyamide cages along with complex and specialised precision stamped components.
It offers a wide array of bearing cages, with diameters starting from 20 mm to 2,000 mm to sectors such as automotive, railways, aviation and aerospace, construction, mining, agriculture, electrical and electronics, renewables sectors, among others.
In addition, through its solar EPC business, it provides solutions to solar photovoltaic requirements.
Subscription Status: Day 2
The IPO subscribed 10.35 times as of 5 p.m. on Sept. 15
Institutional investors: 1.63 times.
Non-institutional investors: 24.91 times.
Retail investors: 9.14 times.
Employee reserved: 6.34 times.