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Harsha Engineers International’s initial public offering (IPO) will open for public subscription tomorrow i.e., Wednesday, September 14, 2022 and the issue will conclude on September 17 and the price band has been fixed at ₹314-330 per share for its ₹755-crore initial share sale.
As per market observers, Harsha Engineers shares are commanding a premium (GMP) of ₹212 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Monday, September 26, 2022.
Harsha Engineers IPO consists of a fresh issue of equity shares aggregating to ₹455 crore, and an offer-for-sale (OFS) of up to ₹300 crore by existing shareholders. Proceeds from the fresh issue will be utilised 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.
“At the higher price band of Rs330, HEIL is valued at 27.7x FY22 earnings of ₹11.9 which in our view is reasonable compared to its peers. The company with its strong market share in precision bearing cages and being one of the leading players globally in organized bearing cages, having strong clientele with long standing relationship provides healthy return ratios and visibility going ahead. We recommend investors to SUBSCRIBE to the IPO of HEIL,” said brokerage LKP Securities.
Based in Ahmedabad, Harsha Engineers Harsha Engineers International Limited is a precision engineering company manufacturing bearing cages and stamped components. It has five manufacturing facilities in Changodar, Moraiya, Changshu, China and Ghimbav Brasov in Romania.
As of March 31, 2022, it has manufactured more than 7,205 bearing cages and more than 295 other products. In addition, over the past three years its product development and innovation center has developed more than 1,200 products in different bearing types.
“The company’s manufacturing facilities are positioned strategically, allowing them to serve the international markets effectively and economically. The company’s top and bottom line growth appears to be fair. With a post-issue P/E ratio of roughly 32.70x based on FY22 results, the IPO looks reasonably priced,” said Abhay Doshi, founder, UnlistedArena.com.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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