Precision Bearings Co Harsha IPO Rings In Cheers In Bear Markets

Precision Bearings Co Harsha IPO Rings In Cheers In Bear Markets

Issue Subscribed By 74.7 Times, Heavy Bids All Across

BSE Sensex loses a thousand points, but Harsha IPO gets bids for over 125 crores

MUMBAI, Sep 16 (The CONNECT) – Beating the bear markets, the Initial Public Offering (IPO) of precision bearings major Harsha Engineers International Ltd was subscribed 74.7 times on the final day of bidding today.

The BSE Sensex lost 1,093 points continuing the crash for the third day today amid heavy selling, but the Harsha IPO brought happiness – as the name denotes - to its promoters as the company received bids of 1,25,96,90,175 shares against the offered 1,68,63,795 equity shares, according to the data available on the stock exchanges.

The qualified institutional buyer portion was subscribed 178.26 times. The reserved portion of non-institutional investors witnessed a subscription of 71.32 times. Retail Investors saw a robust demand and was subscribed 17.63 times. The employee portion was subscribed 12.07 times.

The offer, at a price band of ₹314-330, consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an offer for sale of up to Rs 300 crore by existing shareholders.

Axis Capital Limited, Equirus Capital Private Limited, and JM Financial Limited are the book-running lead managers to the issue, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.

Harsha Group was established in the year, 1986 by Harish Rangwala and Rajendra Shah, both having more than 35 years of experience in the precision engineering and bearings cages manufacturing sector that primarily operates in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewable energy, and other industrial sectors.

The Company offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter. It has approximately 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in CY 2020. It also manufactures complex and specialised precision stamped components, welded assemblies, brass castings, cages & bronze castings, and bushings.

The Ahmedabad-based company offers a diversified suite of precision engineering products across geographies and end-user industries, which comprises of engineering business, under which it manufactures bearing cages (in brass, steel, and polyamide materials), complex and specialised precision stamped components, welded assemblies, brass castings and cages & bronze bushings; and solar EPC business, under which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.

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