Harsha Engineers, even in this lacklustre market made a fantastic debut. As against the IPO price of Rs.330, the stock got listed on the BSE at Rs.444 and went up further to Rs.484.
As of now, this is the highest subscribed IPO of this year. The issue was subscribed 74.70 times with QIB portion subscribing 178.26 times, HNIs at 71.32 times and retail at 17.63 times.
India's largest manufacturer of precision bearing cages company, it has a 50% market share of the organized bearing cage market in India and ~6.5% market share globally, serving all the top 6 global bearing makers like Schaeffler, JTEKT, SKF, Timken among others. It derives 2/3rd of Rs. 1,300 cr revenue from exports (including 35% from Europe and 13% from China). It has capacity to manufacture 1,100 million bearing cages per annum (mainly at 2 plants in Gujarat) and 4,600 MTPA castings in Romania (accounting for 15-18% of revenue).
In our IPO Analysis, we had concluded - We hold bullish view on bearings sector and as a key supplier to the industry, Harsha Engineers holds bright prospects. With an attractive pricing, the IPO is a subscribe for both short term as well as long term view.