Harsha Engineers Limited IPO – Review, Allotment, Subscription, GMP & DRHP

Harsha Engineers Limited are the largest manufacturer of precision bearing cages in organized sector in India in terms of capacity and operations and amongst the leading manufacturers of precision bearing cages in the world. Harsha Engineers Limited IPO comprises of [●] Equity shares, face value of Rs.10 each.

Let’s have a detailed review of the company and analytics of the Harsha Engineers Limited IPO release date, IPO offer price, subscription, Harsha Engineers Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Harsha Engineers Limited IPO Review & Ratings

Harsha Engineers Limited IPO Ratings & Review
CriteriaRatings
Industry Sentiments 7.3/10
Industry Ranking 6.3/10
Company Background7.1/10
Company Reputation6.4/10
Competitive Edge7.4/10
Financial Statements6.5/10
Popularity Index6.8/10
Promoters Reputation7.3/10
Retail Appetite 6.2/10
Top Brokers Review7.3/10
Overall Ratings 7.1/10
Star Ratings★★★★☆

Summary of Harsha Engineers Limited IPO

Harsha Engineers Limited IPOHarsha Engineers Limited are the largest manufacturer of precision bearing cages in organized sector in India in terms of capacity and operations and amongst the leading manufacturers of precision bearing cages in the world. The Issue comprises of a Public Issue of [●] Equity shares of face value of Rs.10.00 each fully paid  up. 

  • As per restated financial statements for the fiscal year ended on March 31, 2018, 2017 and March 31, 2016, the total revenue of the Company stood at Rs. 5488.89 millions, Rs. 3715.26 millions, and Rs. 3507.74 millions respectively.
  • During the financial year 2017-18 the Other Income of the company increased to Rs. 415.74 millions as against Rs. 157.58 millions for the financial year 2016-17, representing increase by 163.8% due to increase in interest income & insurance claim in FY 2017- 18.
  • Profit after tax for fiscal year ended on March 31, 2018, March 31, 2017 and March 31, 2016 stood at Rs. 608.20 millions, Rs. 327.38 millions, and Rs. 302.81 millions respectively.
  • The net worth as of March 31, 2018, as per the Restated Consolidated Financial Statements and Restated Standalone Financial Statements included in this Draft Red Herring Prospectus was Rs 2,522.99 million and Rs 3,097.42 million, respectively.
  • The net asset value per Equity Share as of March 31, 2018, as per the Restated Consolidated Financial Statements and Restated Standalone Financial Statements included in this Draft Red Herring Prospectus was Rs 104.13 and Rs 128.62, respectively.

The Promoters of this company are Harish Ranjit Rangwala, Rajendra Shantilal Shah, Vishal Rangwala, Pilak Rajendra Shah. The lead manager to the issue is Axis Capital Limited and Edelweiss Financial Services Limited and the Registrar to this issue is Link Intime India Private Limited.


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Harsha Engineers Limited IPO Date

The opening and the closing date of IPO of Harsha Engineers Limited is not known yet.


Harsha Engineers Limited IPO Subscription

Day / DateQIBNIIRIITotal Subscription
Day 1 
Day 2
Day 3
Day 4
Day 5
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Harsha Engineers Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


Harsha Engineers Limited IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Harsha Engineers Limited IPO Equity Share Offering

 30,00,000 Equity Shares of Rs 10/- each but Issue Price is yet to be disclosed.


Harsha Engineers Limited – Company Overview

Harsha Engineers Limited was incorporated as Harsha Engineers Private Limited on March 4, 1986 at Ahmedabad, Gujarat as a private limited company under the Companies Act, 1956. Then Company was converted into a public limited company and its name changed to Harsha Engineers Limited. Consequently, the Registrar of Companies issued a fresh certificate of incorporation on September 18, 2001.

Harsha Engineers Limited are the largest manufacturer of precision bearing cages in organized sector in India in terms of capacity and operations and amongst the leading manufacturers of precision bearing cages in the world with a market share of approximately 5% to 6% in the organized segment of the global brass, steel and polyamide bearing cages market in terms of revenue. This Company holds more than 50% of the market share in the Indian bearing cages market in the organized segment for brass, steel and polyamide cages.

The combined bearing cages capacity of all the manufacturing units is 1,016.27 million pieces per annum and for semi-finished brass castings is 35,376 million tonnes per annum. These facilities have end-to-end manufacturing capabilities and strong engineering with design capabilities.

Their production facilities are at Changodar and Moraiya, near Ahmedabad in Gujarat in India, they also have production facilities in Changshu and Suzhou in China and Ghimbav Brasov in Romania.

The Company is promoted by : Harish Ranjit Rangwala, Rajendra Shantilal Shah, Vishal Rangwala, Pilak Rajendra Shah and are the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Harsha Engineers Limited:

  • Diversified product portfolio;
  • Strong long-term customer relationships
  • Strategically located domestic and international production facilities
  • Deep expertise in Tooling, research and development and automation
  • Strong, experienced and dedicated senior management team and qualified workforce.

Harsha Engineers Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Restated Standalone Statement:

Amount (in INR & millions)
31-Mar-1831-Mar-1731-Mar-16
Total Assets5,876.175,104.734,741.83
Total Revenue5,488.893,715.263,507.74
Total Expense4,546.123,254.123,100.95
Profit After Tax608.20327.38302.81

Earnings per Equity Share (in millions)(Based on Standalone)

31-Mar-1831-Mar-1731-Mar-16
Basic25.2513.5912.57
Diluted25.2513.5912.57

From the above statements, one could find that the Harsha Engineers Limited may perform well.


Harsha Engineers Limited IPO – Promoters

The Promoters of this company are:

  1. Harish Ranjit Rangwala
  2. Rajendra Shantilal Shah
  3. Vishal Rangwala
  4. Pilak Rajendra Shah

List of Related Parties (Key Managerial Personnel)

  • Harshendra Punjawat,
  • Vishal Rangwal
  • Harish Ranjit Rangwala
  • Kiran Mohanty
  • Pilak Rajendra Shah
  • Rajendra Shantilal Shah

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Harsha Engineers Limited IPO Offer Details or Issue Details

ParticularsNo.of Equity Shares
OfferUp to [●] Equity Shares, aggregating up to Rs [●] million
Of which
Fresh issueUp to [●] Equity Shares, aggregating up to Rs 3,700 million
Offer for SaleUp to 1,325,000 Equity Shares, aggregating up to Rs [●]
million
Employee Reservation Portion[●] Equity Shares
Accordingly,
The Net Offer[●] Equity Shares
Of which:
QIB CategoryNot more than [●] Equity Shares
Of which:
 Anchor Investor PortionUp to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed)[●] Equity Shares
Of which:
– Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion))Up to [●] Equity Shares
– Balance of QIB Category for all QIBs including Mutual Funds[●] Equity Shares
Non-Institutional CategoryNot less than [●] Equity Shares
Retail CategoryNot less than [●] Equity Shares
Equity shares outstanding prior to the Offer24,082,800 Equity Shares
Equity Shares outstanding after the Offer[●] Equity Shares

Harsha Engineers Limited IPO Issue Object

These are the IPO Issue Objects of the company

  • Pre-payment or scheduled repayment of certain indebtedness availed by their Company
  • General Corporate Purposes
  • Investment in Subsidiaries: (i) Investment in Harsha Engineers Europe SRL by ways of equity infusion (ii) Investment in Harsha Precision Bearing Components (China) Co. Ltd., in the form of debt capital.
  • Infrastructure development for the existing facilities in India.

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Harsha Engineers Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Diversified product portfolio;
  • Strong long-term customer relationships
  • Strategically located domestic and international production facilities
  • Deep expertise in Tooling, research and development and automation
  • Strong, experienced and dedicated senior management team and qualified workforce.

The relevant quantitative factors are:

As per the Restated Standalone Financial Statements:

Basic/Diluted EPS in Rs.RONW (%)NAV (Rs.)
31-Mar-1612.5713.99
31-Mar-1713.5913.14
31-Mar-1825.2519.64128.62
  • Industry P/E Ratio

Not Applicable, as there are no listed entities similar to their line of business and comparable to their scale of operations.

  • Competitive Peers:

Not applicable, as there are no comparable peer companies similar to their line of business and comparable to their scale of operations.


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Harsha Engineers Limited IPO Lead Managers

Lead Managers
Axis Capital Limited 

Edelweiss Financial Services Limited 

Harsha Engineers Limited IPO Registrar to offer

Link Intime India Private Limited
C-101, 1st Floor, 247 Park, LBS Marg,
Vikhroli (West)Mumbai 400 083
Tel: (91 22) 4918 6200, Fax: (91 22) 4918 6195
Email: ,
Investor Grievance Email:
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration Number: INR000004058

Other Details:

  • Statutory Auditor –M/s. Pankaj R. Shah & Associates
  • Peer Review Auditor – M/s. Pankaj R. Shah & Associates

Harsha Engineers Limited IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking6.5/106.6/106.6/106.4/106.4/10
Sharekhan6.7/106.4/106.6/106.1/106.2/10
Kotak Securities6.7/106.7/106.7/106.4/106.3/10
ICICI Direct6.6/106.3/106.7/106.5/106.5/10
IIFL6.4/106.7/106.8/106.4/106.7/10
Edelweiss6.7/106.4/106.4/106.3/106.7/10
Zerodha6.5/106.4/106.7/106.4/106.5/10
5Paisa6.7/106.4/106.3/106.7/106.5/10
Karvy6.8/106.3/106.7/106.4/106.0/10
Motilal Oswal6.6/106.4/106.6/106.6/106.4/10

Harsha Engineers Limited IPO Grey Market Premium

The Harsha Engineers Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Harsha Engineers Limited IPO News

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