The IPO consists of the issuance of fresh equity shares worth Rs 455 crore, whereas existing shareholders and promoters will offload Rs 300 crore worth of shares via offer for sale (OFS).
As part of OFS, Rajendra Shah will offload shares worth up to Rs 66.75 crore, Harish Rangwala up to Rs 75 crore, Pilak Shah up to Rs 16.50 crore, Charusheela Rangwala up to Rs 75 crore and Nirmala Shah up to Rs 66.75 crore.
The company will raise Rs 755 crore through its initial stake sale. The issue will remain open for subscription till Friday, September 16. The anchor book will open on Tuesday, September 13.
Investors can make a bid for a minimum of 45 equity shares and in multiples thereafter. The company is offering a discount of Rs 31 per equity share to its eligible employees.
The net proceeds from the fresh issue will be utilised towards paying debt worth Rs 270, purchase of machinery worth Rs 77.95 crore, infra repairs worth over Rs 7 crore and renovation of the existing facilities, along with general corporate proposes.
This is the Ahmedabad-based company’s second attempt to go public. It had filed draft papers with the regulator in August 2018, but could not go public. It filed its latest DRHP in February 2022.
Harsha Engineering offers a diverse suite of precision engineering products across geographies and end-user industries, including automotive, aviation and aerospace, railways, construction, mining, renewable energy, agriculture and more. The company has five manufacturing facilities.
It claims to have a 50 per cent market share in the organised segment of the Indian bearing cages market and a 5.2 per cent market share in the global organised bearing cages market for brass, steel and polyamide cages as of the year 2020.
The company, which serves in more than 25 countries, recorded a profit of Rs 91.94 crore on revenue of Rs 1321.48 crore for the year ended March 2022. The net debt during the period was Rs 356.59 crore.
Up to 50 per cent of the total offer is reserved for qualified institutional buyers, and 15 per cent for non-institutional investors. The remaining 35 per cent stake is allocated to the retail investors.
Axis Capital, Equirus Capital and
are the lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.
