Harsha Engineers International Ltd | Globe Capital
Harsha Engineers International Ltd
Closed
Price Band
Rs. 314-330
IPO Issue Period
Sep 14, 2022 to Sep 16, 2022
Issue Size
Rs. 755Cr.
Face value
Rs. 10 /-
Fresh issue
455 Cr
Offer for sale
300 Cr.
Minimum Shares for Retail
45 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Sep 15, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

Axis Capital Limited (Past IPO Performance)
Equirus Capital Private Limited (Past IPO Performance)
JM Financial Consultants Private Limited (Past IPO Performance)

Harsha Engineers International Limited was incorporated on December 11, 2010. The part of Harsha Group, HEIL is a leading engineering company that offers diversified suite of products across geographies and end-user industries. It manufactures brass, steel and polyamide cages and stamped components with production facilities located in Asia (India & China) and in Europe (Romania). HEIL’s market share is estimated to be around ~50-60% in the Indian bearing cages market making it the largest manufacturer of precision bearing cages in organized sector in India in terms of revenues and amongst the leading manufacturers of precision bearing cages in the world. HEIL accounted for a share of 6.5% in the global organized bearing brass, steel and polyamide cages market in CY2021.

Business Segments:

  • Engineering business, under which HEIL manufactures bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings; and
  • Solar EPC business, under which HEIL provides complete comprehensive turnkey solutions to all solar photovoltaic requirements

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 1321.48 873.75 885.85
Profit After Tax 91.94 45.44 21.91
EPS 16.06 9.09 6.26
OPM (%) 14.12% 14.30% 11.29%
PATM (%) 6.87% 5.18% 2.44%

 

  • Comprehensive solution provider offering a diversified suite of precision engineering products across geographies and end-user industries.
  • Long-standing relationships with leading clientele.
  • Strategically located domestic and international production facilities and warehouses.
  • Expertise in Tooling, design development and automation.
  • Consistent track record of growth and financial performance.
  • Strong, experienced and dedicated senior management team and qualified workforce.

(a) Pre-payment or scheduled repayment of a portion of the existing borrowing availed by our Company.

(b) Funding capital expenditure requirements towards purchase of machinery.

(c) Infrastructure repairs and renovation of our existing production facilities including office premises in India.

(d) General corporate purposes.

At the upper band of Rs 330, the IPO is valued at 20.55x with earnings of 16.06 (EPS FY22). Its valuations appear to be reasonable when compared to its peers which are operating at an industry average P/E of 50.98 times. Hence, Investors may subscribe to the Issue.

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