The 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. As a part of the OFS, Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah will offload shares.
As per market observers, Harsha Engineers shares are commanding a premium (GMP) of ₹190-200 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.
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.
The company has five manufacturing facilities with two of its principal manufacturing facilities at Changodar and one at Moraiya, near Ahmedabad in Gujarat in India, and one manufacturing unit each at Changshu, China and Ghimbav Brasov in Romania, which allow access to its customers in over 25 countries. This is the Ahmedabad-based company's second attempt to go public. Earlier it had filed its draft papers with the regulator in August 2018, reported PTI.
Harsha Engineers’ revenue from operations increased by 51% to ₹1,321 crore for fiscal 2022 from ₹873 crore for fiscal 2021 while net profit increased to ₹91.9 crore for fiscal 2022 from ₹45 crore for fiscal 2021, primarily due to increase in the revenue from operations from the engineering business and reduction in the operating loss of solar EPC business as well as gain on account of exchange rates.
"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.
