Issue Subscribed 15 Per Cent, Retail Portion Booked 24 Per Cent

Issue Subscribed 15 Per Cent, Retail Portion Booked 24 Per Cent

The initial public offering (IPO) for Harsha Engineers International Ltd (HEIL) has opened for public subscription on Wednesday. Since morning, the IPO was subscribed 15 per cent, with bids coming in for 24.56 lakh equity shares against an offer size of 1.68 crore shares.

The offer size of Harsha Engineers’ IPO was reduced to 1.68 crore equity shares from nearly 2.3 crore after the firm mopped up Rs 225.74 crore via anchor book the previous day.

Retail investors subscribed 24 per cent of their quota of shares and the employees bid for 27 per cent of the portion reserved for them. Shares worth Rs 2.5 crore have been set aside for the employees who will also get a discount of Rs 31 a share to the final price.

Non-institutional investors bought 11 per cent of their quota of shares, while qualified institutional buyers bought 630 shares against the 47.92 lakh reserved for them.

The issue will conclude on September 17, 2022 (Saturday).

The precision bearing cages manufacturer is looking to raise Rs 755 crore through the IPO that comprises a fresh issue of Rs 455 crore and an offer for sale of shares worth Rs 300 crore by promoters.

The price band for its IPO, which closes September 16, is Rs 314-330 a share.

The company said that it will use the proceeds from the fresh issue for debt payment, funding working capital requirements towards purchase of machinery, infrastructure repairs, and renovation of the existing production facilities and for general corporate proposes.

Most of analysts have given a thumbs up to the offer, given the favourable long-term prospects with good earnings visibility, long standing relationship with key industry players, and healthy market share in organised precision bearing cages market.

Harsha Engineers International Ltd is the largest maker of precision bearing cages having a market share of about 50 per cent.

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