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Harsha Engineers International Limited, the Ahmedabad-based maker of precision bearing cages, will raise up to ₹755 crore through the initial public offering (IPO). The company has filed the draft red herring prospectus (DRHP) with the regulator.
The offer consists of a fresh issue of equity shares aggregating to ₹455 crore, and offer for sale of up to ₹300 crore by existing shareholders that include promoters and promoter groups as mentioned in the DRHP.
Proceeds from the fresh issue will be utilised to the tune of up to ₹270 crore for part repayment/pre-payment of loans, while ₹77.95 crore will be used for funding capital expenditure requirements towards purchase of machinery, and up to ₹7 crore will be used for infrastructure repairs and renovation of the existing production facilities and general corporate proposes.
Founded in 1986 by Harish Rangwala and Rajendra Shah, company had earlier filed its draft papers with the regulator in August 2018.
The company’s target sectors include automotive, aviation & aerospace, railways, construction, mining, renewable energy, agriculture and other industrial sectors, and offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter.
Market share
It has approximately 50 per cent of the market share in the organised segment of the Indian bearing cages market and 5.2 per cent of the market share in the global organised bearing cages market for brass, steel and polyamide cages in 2020, it said.
The company also manufactures complex and specialised precision stamped components, welded assemblies, brass castings and cages & bronze castings and bushings. Its five manufacturing facilities include two at Changodar and one at Moraiya, near Ahmedabad in Gujarat, and one manufacturing unit each at Changshu, China and Ghimbav Brasov in Romania. Company has customer base across 25 countries in North America, Europe, Asia, South America and Africa.
Axis Capital Limited, Equirus Capital Private Limited and JM Financial Limited are the book running lead managers to the issue. The company’s consolidated net profit for the financial year ended March 31, 2021, was ₹45.44 crore, up from ₹21.9 crore in the previous year.
Consolidated revenue from operations for the year ended March 2021 stood at ₹874 crore, of which, two-thirds of the income comes from outside India for last three fiscals.
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