Harsha Engineers IPO Evaluate – GMP, Strengths, Weaknesses & Extra!


Harsha Engineers IPO Evaluate: Harsha Engineers World Restricted is arising with its Preliminary Public Providing. The IPO will open for subscription on September 14th, 2022, and shut on September sixteenth, 2022. It’s having a look to boost Rs 755 Crores out of which Rs 455 Crores will probably be a contemporary factor and the remainder Rs 300 Crores will probably be an be offering on the market.

On this article, we will be able to have a look at the Harsha Engineers IPO Evaluate and analyze its strengths and weaknesses. Stay studying to determine! 

Harsha Engineers IPO Evaluate – About The Corporate

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Harsha Engineers World Restricted is the most important producer of precision bearing cages, in the case of earnings, within the arranged sector in India, and some of the main producers of precision bearing cages on this planet.

The corporate had a  50-60% of the marketplace proportion within the arranged section of the Indian bearing cages marketplace and six.5% of the marketplace proportion within the international arranged bearing cages marketplace for brass, metal, and polyamide cages as of FY2021.

The goods of the corporate are used within the car, railways, aviation & aerospace, development, mining, agriculture, electric and electronics, and renewables sectors amongst others.

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Harsha Engineers IPO Review - Total assets

The corporate may be an EPC provider supplier within the sun photovoltaic business and likewise supplies operations and upkeep services and products within the sun sector. Their sun EPC industry is widely categorised into Floor mount tasks, Rooftop tasks, and Operations and upkeep of floor mount and rooftop tasks.

As on March 31, 2022, their mixture put in capability throughout their 4 production amenities was once 4,596 metric tonnes according to annum for castings and 1,097.87 million items according to annum for bearing cages.

The goods portfolio of the corporate comprises:

  • Bearing Cages
  • Metal Cages
  • Brass Cages
  • Polyamide Cages
  • Bronze Timber for Sliding bearing
  • Speciality Parts

Harsha Engineers IPO Evaluate – Monetary Highlights

Harsha Engineers IPO Review - Financials
Financials 2

(Supply: DRHP of the corporate)

Harsha Engineers IPO Evaluate – Business Review

The worldwide bearings marketplace was once valued at USD 85.2 billion in 2015 and grew at an annual charge of 12% to USD 104.6 billion in 2021 in spite of being suffering from the contraction in call for and provide led to through the outbreak of Covid 19 pandemic. 

The bearings marketplace is anticipated to develop at a CAGR of 6% to eight% from 2021 to 2029 and is estimated to be valued at USD 171.7 billion within the yr 2029.

On the subject of earnings, the bearings marketplace in India accounted for a proportion of about 5.2% of the worldwide bearings marketplace in 2021. The Indian bearings marketplace grew at a CAGR of seven.2% from 2015 to 2019. Additional, it’s anticipated to develop at a CAGR of 8.3% from 2021 to 2029 and is estimated to be valued at USD 10.3 billion in 2029.

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The worldwide bearing cages marketplace was once valued at USD 4,261.5 million and grew at a CAGR of five.6% between 2015 and 2019. It’s additional anticipated to develop at a CAGR of 6% to eight% over the length 2021 to 2029 and is estimated to be valued at USD 8,583.5 million within the yr 2029.

Strengths of the Corporate

  • The corporate has a diverse product portfolio in the case of the fabrics used in addition to the size and end-use of the completed merchandise.
  • The corporate has 4 strategically situated production amenities unfold throughout 3 international locations in India, China, and Romania.
  • The corporate has a decade of revel in in tooling, design construction, and automation of its product.
  • The corporate has a robust, skilled, and devoted senior control group and a certified personnel.
  • The corporate has a constant monitor report of enlargement and fiscal efficiency.

Weaknesses of the Corporate

  • The corporate relies on a restricted collection of consumers for a good portion of its revenues.
  • The functioning of the industry relies on 3rd events comparable to Brokers, Providers. Any alternate in family members can disrupt the industry.
  • The corporate is topic to more than a few regulations, laws, approvals, and licenses required within the extraordinary path of industrial, together with environmental, well being, and protection regulations and different laws.
  • The corporate is uncovered to positive inherent dangers comparable to Technological possibility and Foreign currencies fluctuations possibility.
  • There are particular litigations which can be pending in opposition to the corporate and its administrators. 

Gray Marketplace Knowledge

The stocks of Harsha Engineers traded at a top class of  66.67% within the gray marketplace on September twelfth. The stocks traded at Rs 550. This offers it a top class of Rs 220 according to proportion over the cap worth of Rs 330. 

Key IPO Knowledge

Details Main points
IPO Dimension ₹ 755 Crores
Contemporary Factor ₹ 455 Crores
Be offering for Sale (OFS) ₹ 300 Crores
Opening date September 14, 2022
Final date September 16, 2022
Face Worth ₹ 10 according to proportion
Value Band ₹ 314 to ₹ 330 according to proportion
Lot Dimension 45 Stocks according to lot
Minimal Lot Dimension 13 (585 stocks)
Most Lot Dimension 2 (45 stocks)
Checklist Date September 26, 2022

Promoters: Rajendra Shah, Harish Rangwala, Vishal Rangwala and Pilak Shah 

E-book Operating Lead Managers: Axis Capital Restricted, Equirus Capital Personal Restricted, and Jm Monetary Restricted 

Registrar To The Be offering: Hyperlink Intime India Personal Restricted

The Function of the Factor

The Internet Proceeds from the Contemporary Factor are proposed to be applied for: 

  • Pre-payment or scheduled reimbursement of a portion of the present borrowing availed through the Corporate.
  • Investment capital expenditure necessities against the acquisition of equipment.
  • Infrastructure upkeep and renovation of the present manufacturing amenities together with place of work premises in India.
  • Common company functions.

In Final

On this article, we checked out the main points of Harsha Engineers 2022. Analysts stay divided at the IPO and its attainable features. It is a just right alternative for the buyers to seem into the corporate and analyze its strengths and weaknesses. That’s it for this submit.

Are you making use of for the IPO? Tell us within the feedback under.

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