Harsha Engineers IPO Buy or say good Bye? Know All about Harsha Engineers IPO

The Company: First Let’s understand the company, Harsha Engineers international is the precision bearing cage manufacturer based in Gujarat’s famous city Ahmedabad and have a good fundamental on the books of accounts. (I’m sure many of you don’t know what’s precision bearing cage, so I have appended the image above). Company has good clientele and has expert engineers hired from various parts of India. Company has 60% market share in the Indian bearing cages market. Which is sets apart from its competitions. The major revenue is coming from outside india as demand in Europe and Latin America is high for precision bearing.

The Issue Price: now let’s talks about the pricing. The IPO issue price band is Rs 314-330 per share and Harsha Engineers is issuing the fresh equity shares worth of Rs.455 Crore and an offer for sale worth of Rs. 300 Crore and to fulfil the OFS deal major promotors and founders of the company will sell their stacks from the company. The gained amount from IPO will be utilized to pay existing debt along with funding the current working capital which required to purchase of new age machinery and repair and maintenance of existing production facilities.

Key Dates for IPO: well talking about time and date today is the 2nd day of the IPO which was opened on 14th September and will get close on 16th September at evening 5pm. So you can bid tomorrow after market hours as well but place bid before 5pm to avoid FOMO. (fear of missing out (LoL))

Grey market Premium: Before the IPO get launched the shares of the company starts trading on the grey market and for Harsha Engineers IPO The grey market premium is 200 Rs. Which means shares can debut at 330+200 =530Rs on the day of listing.


Should you Buy or Say Good bye? : if we consider the listing price of 330, then the company is valued at 27x higher and if we look at the FY 22 earning then the Harsha Engineers is having a upper hand in front of the competitors. Strong market share and decent PE Ratio brokerage firms are assuming that the retail investor can take buy call on this IPO as market is on a positive move specially after the recent listing of Dream folk services IPO This one will not disappoint the investor. Hence we can say that it’s a buy buy and not a good bye to Harsha Engineers.

Remember to place order before 5pm on 16th September to qualify for the IPO. The minimum quantity is 45 shares in one lot which means you have to spend Rs 14,850 to buy 1 lot of IPO which consist 45 equity shares.

                                    - Best wishes Team Finance Plus NX

Disclaimer : Always seek your financial advisor guidence before investing in stock market