The issue, which kicked off for subscription on Wednesday, September 14, can be subscribed till Friday, September 16. The company is selling its shares in the range of Rs 314-330 apiece to raise Rs 755 crore via its initial stake sale.
According to the data from BSE, investors made bids for 7,28,21,070 equity shares or 4.32 times compared to the 1,68,63,795 equity shares offered for subscription by 11 am on Thursday.
The quota for retail bidders was subscribed 4.75 times, whereas the allocation for HNI investors fetched 9 times bids. Employee allocation was filled 3.51 times, whereas the quota for institutional investors was filled only 7 per cent.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. Retail bidders will get the remaining 35 per cent allocation.
The majority of the brokerages remain positive on the issue and suggest subscribing to it. However, a few have flagged rising prices of raw materials and dependency on major clients as key concerns.
“The company is a comprehensive solution provider, offering a diversified suite of precision engineering products across geographies and end-user industries. It has long-standing relationships with leading clientele,” said Hem Securities.
It has strategically located domestic and international production facilities and warehouses & expertise in tooling, design development and automation with a consistent track record of growth, it added. The financial performance is looking strong to us, it said while assigning a ‘Subscribe’ rating on the issue.
At the upper end of the IPO price band, HEIL is valued at 32.7x its post-issue FY22 EPS of Rs.10.1, said Sandep Abhange from Anand Rathi Research. HEIL is operating in a niche and fragmented bearing cages market, he said.
“Considering its dominant market share, Healthy ROE & ROCE of 17.6 per cent and 27 per cent, respectively and strong clientele with long-standing relationships, we recommend ‘subscribe’ rating to this IPO,” he added.
Harsha Engineers raised Rs 225.75 crore from global and domestic anchor investors by allotting 68.4 lakh equity shares at Rs 330 apiece, the company said in a regulatory filing.
American Funds Insurance, Goldman Sachs, Pinebridge Global Funds, Abu Dhabi Investment Authority, Whiteoak Capital and multiple domestic mutual funds participated in the anchor book.
, Equirus Capital and are lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.
