Harsha Engineers International
Mainboard₹755 Cr issue
+34.55%
Listing gain over issue price
Issue size
₹755 Cr
1 lot at cut-off
₹14,850
Lot size
45shares
Open
14 Sep 2022
Close
16 Sep 2022
Allotment
21 Sep 2022
Listing
26 Sep 2022
Listing performance
Issue price
₹330
Listed at
₹444
Listing-day close
₹486.50
Latest price
₹404.45
Close on 23 Oct 2026
Listing gain
+34.55%
Return since issue
+22.56%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Sep 2022 – 16 Sep 2022
- Listing date
- 26 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹330 per share
- Lot size
- 45 shares
- Total issue size
- ₹755 Cr
- Market cap at offer price
- ₹3,004 Cr
- Promoter holding
- 99.70% → 84.59% pre-issue → post-issue
- ISIN
- INE0JUS01029
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- NH-8A, Sarkhej-Bavla Highway, Changodar, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 68,40,855 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 45 shares per lot, in multiples, at ₹330
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 45 | ₹14,850 |
| Retail (max) | 13 | 585 | ₹1,93,050 |
| S-HNI (min) | 14 | 630 | ₹2,07,900 |
| S-HNI (max) | 67 | 3,015 | ₹9,94,950 |
| B-HNI (min) | 68 | 3,060 | ₹10,09,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
68,40,855
Anchor portion
₹226 Cr
at ₹330 per share
Valuation and performance
Valuation at offer price
₹330 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 16.06 | — |
| P/E (×) | 20.55 | — |
| Market cap | — | ₹3,004 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 17.42%
- ROCE
- 23.00%
- Debt / equity
- 0.74
- PAT margin
- 6.87%
- EBITDA margin
- 14.12%
- NAV per share
- ₹68.34
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Harsha Engineers International
Harsha Engineers International Limited (formerly Harsha Engineers International Private Limited and Harsha Abakus Solar Private Limited) was incorporated on December 11, 2010, and recently underwent a corporate reorganization in December 2021. The company manufactures precision bearing cages in brass, steel and polyamide materials, complex and specialised precision stamped components, welded assemblies and brass castings for automotive and industrial applications. Additionally, the company provides comprehensive turnkey solar photovoltaic solutions through its solar EPC business. The company operates manufacturing units in India (Changodar, Moraiya, Aastha), China (Changshu), and Romania (Ghimbav Brasov), serving global markets primarily in USD, Euro, RMB, JPY and RON currencies. For Fiscal 2022, engineering business contributed 93.72% of revenue from operations while solar EPC contributed 6.28%. The company has a market share of approximately 6.5% in the global organized bearing brass, steel and polyamide bearing cages market (CY 2021) and around 50-60% market share in the Indian bearing cages organized segment.
Company Analysis
from RHPHarsha Engineers International Limited is the largest manufacturer of precision bearing cages in India's organized sector and among the world's leading manufacturers, offering diversified precision engineering products including bearing cages, stampings, welded assemblies, brass castings and solar EPC solutions across multiple geographies and end-user industries.
Harsha Engineers International Limited (formerly Harsha Engineers International Private Limited and Harsha Abakus Solar Private Limited) was incorporated on December 11, 2010, and recently underwent a corporate reorganization in December 2021. The company manufactures precision bearing cages in brass, steel and polyamide materials, complex and specialised precision stamped components, welded assemblies and brass castings for automotive and industrial applications. Additionally, the company provides comprehensive turnkey solar photovoltaic solutions through its solar EPC business. The company operates manufacturing units in India (Changodar, Moraiya, Aastha), China (Changshu), and Romania (Ghimbav Brasov), serving global markets primarily in USD, Euro, RMB, JPY and RON currencies. For Fiscal 2022, engineering business contributed 93.72% of revenue from operations while solar EPC contributed 6.28%. The company has a market share of approximately 6.5% in the global organized bearing brass, steel and polyamide bearing cages market (CY 2021) and around 50-60% market share in the Indian bearing cages organized segment.
precision engineering and manufacturingbearings and bearing cagesprecision stampingsautomotive componentsindustrial componentssolar energy (EPC)
Objects of the Issue
- Pre-payment or scheduled repayment of a portion of the existing borrowing availed by our Company ₹2,700.00 million p.24
- Funding capital expenditure requirements towards purchase of machinery ₹779.54 million p.24
- Infrastructure repairs and renovation of our existing production facilities including office premises in India ₹71.16 million p.24
- General corporate purposes ₹743.30 million p.24
- Repayment or prepayment of certain indebtedness ₹2,000.00 million p.91
- Funding capital expenditure towards purchase of machinery for production units ₹1,500.00 million p.91
- Infrastructure repairs and renovation of existing units and ancillary structures in India ₹1,050.00 million p.91
- Pre-payment or scheduled repayment of a portion of the existing borrowing availed by our Company ₹2,700.00 million p.96
- Funding capital expenditure requirements towards purchase of machinery ₹779.54 million p.99
- Infrastructure repairs and renovation of our existing production facilities including office premises in India ₹71.16 million p.102
- General corporate purposes ₹743.30 million p.104
Issue Structure
- Total Issue
- ₹7,550.00 million (22,886,595 Equity Shares)
- Fresh Issue
- ₹4,550.00 million (13,795,695 Equity Shares)
- Offer for Sale
- ₹3,000.00 million (9,090,900 Equity Shares)
- Price Band
- ₹314 (Floor Price) to ₹330 (Cap Price) per Equity Share
- Lot Size
- 45 Equity Shares and in multiples of 45 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue primarily through manufacturing and selling precision bearing cages and engineering components to automotive and industrial customers, and through providing solar EPC (Engineering, Procurement and Construction) solutions. The company sells products through a network of global agents and direct customer relationships. For Fiscal 2022, 63.02% of revenue from operations was denominated in foreign currencies. The top five customer groups contributed 70.55% of total revenue from operations in Fiscal 2022.
Business Segments
Manufacture of bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings for automotive and industrial applications
Provision of complete comprehensive turnkey solutions to all solar photovoltaic requirements
Manufacturing bearing cages in brass, steel and polyamide materials up to 2,000 mm diameter, complex precision stamped components, welded assemblies, brass and bronze castings and bushes for automotive, railways, renewable energy and other industrial applications
Undertaking EPC-related services in relation to solar photovoltaic based energy requirements of clients, including construction of solar power projects
Manufactures precision bearing cages in brass, steel, and polyamide materials ranging from 20mm to 2,000mm in diameter for automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical & electronics, and renewables sectors
Manufactures complex and specialised precision stamped components, welded assemblies, brass castings, and bronze bushings for various industrial applications
Provides complete comprehensive turnkey solutions to solar photovoltaic requirements including design, engineering, procurement, project management and operations and maintenance services
Manufactures precision bearing cages made from brass, steel, and polyamide for various bearing applications including cylindrical roller bearing cages, spherical roller bearing cages, deep groove bearing cages, angular contact ball bearing cages, thrust roller cages, and taper roller cages.
Manufactures specialty stamping components, semi-finished brass castings, and bronze bushings. Provides high quality precision parts for automotive applications (two-wheeler and four-wheeler), industrial applications as metal inserts and railway seal components, and electrical and appliance applications.
Provides complete turnkey solutions for solar photovoltaic requirements including site identification, land acquisition, permits, setting up solar PV power plants, power evacuation infrastructure, and operations & maintenance services. Classified into ground mount projects, rooftop projects, and operations & maintenance services.
Manufacturing of bearing cages in brass, steel, and polyamide materials and stamping components primarily for automotive and industrial customers. Includes design, tooling, development, procurement and manufacturing.
Undertakes turnkey solar photovoltaic projects using polycrystalline and thin-film materials. Includes engineering, design, development, procurement, construction, erection, installation, commissioning, operation and maintenance of solar power projects ranging from KW to MW scale.
Manufacture and sale of bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies, brass castings and cages, and bronze castings and bushings. Products range from 20mm to 2,000mm in diameter and serve automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, and renewables sectors.
Provides complete comprehensive turnkey solutions for solar photovoltaic projects including engineering, design, development, procurement, construction, erection, installation, and commissioning. Also provides operations and maintenance services in the solar sector. Company has experience installing at least 500 MW and over 60 MW commissioning in rooftop segment as of March 31, 2022.
SWOT Analysis
Strengths
- • Largest manufacturer of precision bearing cages in organized sector in India by revenue; among leading manufacturers globally(p.24)
- • Diversified suite of precision engineering products across geographies and end-user industries(p.24)
- • Strategically located domestic and international production facilities in India, China, and Romania(p.42)
- • Significant global market presence with 6.5% global organized bearing cages market share and 50-60% Indian organized market share(p.39)
- • Strong revenue growth and profitability with revenue from operations increasing from ₹8,737.54 million in Fiscal 2021 to ₹13,214.81 million in Fiscal 2022(p.25)
- • Strict quality certifications and customer validation process(p.43)
- • Comprehensive insurance coverage for assets and operations(p.54)
- • International production footprint with multiple facilities(p.47)
- • Registered brand and trademark portfolio(p.50)
- • Largest precision bearing cage manufacturer in organized Indian sector with significant global market share(p.142)
- • Diversified product portfolio across materials, dimensions, and end-use applications(p.145)
- • Long-standing relationships with leading global bearing manufacturers(p.146)
- • Strategically located manufacturing facilities across three countries with multinational presence(p.146)
- • In-house expertise in tooling, design development, and automation capabilities(p.148)
- • Strong financial performance with healthy profitability metrics(p.149)
- • Experienced founder promoters with 35+ years in precision engineering sector(p.143)
- • Leading market position in bearing cages with significant market share(p.151)
- • Extensive product portfolio with significant development capability(p.153)
- • Strategic global manufacturing footprint with three continents coverage(p.151)
- • Strong and diversified customer base across multiple geographies and sectors(p.162)
- • International quality certifications across manufacturing facilities(p.161)
- • Integrated and automated manufacturing infrastructure with optimized operations(p.151)
- • Successful track record of strategic acquisitions and international expansion(p.151)
- • Established partnerships with key global customers for innovation and growth(p.151)
Weaknesses
- • High customer concentration with top 5 customer groups contributing 70.55% of engineering revenue in Fiscal 2022(p.33)
- • Dependence on network of agents with limited control over their operations and potential conflicts of interest(p.34)
- • Reliance on limited number of raw material suppliers with top 5 suppliers contributing 43.93% of total raw material consumption in Fiscal 2022(p.40)
- • History of breaches of financial covenants under financing agreements in Fiscal 2020 and Fiscal 2019(p.38)
- • Significant unsecured loans amounting to ₹735.36 million (19.11% of total borrowings) that may be recalled at any time(p.41)
- • Recent corporate reorganization completed in December 2021 with ongoing administrative and operational challenges including name changes and approvals transfers(p.37)
- • Outstanding contingent liabilities totaling ₹788.22 million as of March 31, 2022(p.41)
- • History of quality complaints and product defect claims(p.43)
- • Past instances of employee accidents and safety incidents(p.44)
- • Material uncollectible receivables and inventory write-offs(p.45)
- • Dependence on limited number of Chinese suppliers for solar components(p.48)
- • Internal control deficiencies resulting in fraudulent payments(p.50)
- • Increased employee attrition rates(p.51)
- • Reliance on leased warehouses with expiring agreements(p.49)
- • Lack of patent protection for manufacturing processes(p.50)
- • High customer concentration with top 10 customers representing substantial portion of revenue(p.146)
- • Significant financial leverage with net debt position(p.145)
- • Significant dependence on top customer groups creating revenue concentration risk(p.162)
- • High proportion of contractual employees with elevated attrition risk(p.163)
- • Significant unutilized capacity across manufacturing facilities(p.161)
- • Exposure to foreign exchange risk through substantial international operations(p.162)
- • Reliance on unsecured loans from promoters and related parties(p.176)
- • Significant provision for doubtful debts required upon Ind AS transition(p.255)
- • High debt-to-equity ratio indicating significant financial leverage(p.260)
- • High concentration of revenue from limited customer groups(p.273)
- • Negative free cash flow to firm in Fiscal 2022(p.271)
- • Outstanding material litigation with Orchestrate Systems Private Limited(p.298)
- • Corporate insolvency petition filed by Ganges International Private Limited(p.298)
Opportunities
- • Global bearings market expected to grow at 6-8% CAGR from 2021 to 2029, reaching USD 171.7 billion by 2029(p.24)
- • Plans to diversify and expand product offerings to fulfill evolving customer and industry needs(p.39)
- • Capital expenditure plans for purchase of machinery and infrastructure improvements to support growth(p.24)
- • Recovery and growth prospects from post-COVID normalization with emerging demand in bearing and stampings market(p.24)
- • Expansion in renewable energy sector with solar EPC operations(p.45)
- • Government support for renewable energy through incentives(p.46)
- • Growing demand for precision components in automotive and industrial sectors(p.43)
- • Growth in bearing cages demand driven by expected bearings market expansion in Asia Pacific(p.150)
- • Expansion into large diameter brass and steel bearing cages with reduced in-house production by bearing companies(p.150)
- • Growing outsourcing trend of bearing components to emerging regions(p.127)
- • Expansion into Indian bearing market with highest CAGR among Asia Pacific countries(p.131)
- • Developing products for growing electric vehicle segment requiring lightweight and precision components(p.151)
- • Growing stamping market with expected CAGR of 6.4% between 2021 and 2029(p.151)
- • Growth through opportunistic inorganic acquisitions targeting technologically innovative companies(p.151)
- • Diversification into higher-margin complex precision components and new product categories(p.151)
- • Expansion of specialty stamping and niche low-volume high-value product segments(p.158)
- • Strong growth potential in renewable energy and emerging industrial sectors(p.151)
- • Strategic warehouse network supporting customer retention and geographic expansion(p.162)
Threats
- • COVID-19 pandemic causing severe disruptions with ongoing uncertainty about duration, severity and impact on business operations(p.32)
- • Risk of loss of major customer groups due to adverse development, reduction in orders, or consolidation(p.33)
- • Significant exposure to foreign currency exchange rate fluctuations with 63.02% of revenue in foreign currency(p.37)
- • Disruption risks in raw material supply due to supplier capacity limitations, labor unrest, natural disasters, and geopolitical factors(p.40)
- • Regulatory and licensing compliance risks with multiple approvals required for operations that may expire or be revoked(p.34)
- • Risk of disruption from geographical concentration of production units in Ahmedabad, China and Romania(p.42)
- • Transportation and logistics risks including shipping delays, container unavailability, and freight cost volatility(p.40)
- • Financial covenant restrictions limiting operational flexibility and ability to undertake certain activities without lender consent(p.37)
- • Government policy changes affecting solar sector economics(p.46)
- • Potential curtailment of renewable energy despite must-run status(p.46)
- • Reduction in government incentives for solar projects(p.47)
- • Disruption in supply from Chinese suppliers due to political relations(p.48)
- • Construction cost fluctuations for solar EPC projects(p.45)
- • Solar project performance variability due to environmental factors(p.46)
- • Labour strikes and work stoppages(p.46)
- • Power supply disruptions affecting manufacturing operations(p.51)
- • Potential loss or damage to cargo during transportation(p.46)
- • Changes in Indian labour laws increasing financial burden(p.56)
- • Natural disasters and pandemics disrupting operations(p.58)
- • Adverse changes in India's sovereign credit rating(p.57)
- • Volatile raw material prices impacting manufacturing costs(p.123)
- • Increasing electric vehicle penetration reducing bearing cage volumes(p.123)
- • EV-driven reduction in bearing cage demand volumes(p.124)
- • Global economic slowdown and geopolitical tensions affecting demand(p.131)
- • Supply chain disruptions from global manufacturing concentration(p.127)
- • Competitive pressure from global bearing cage manufacturers(p.127)
- • Global bearing cages market fragmentation with increasing competitive pressure(p.162)
- • Exposure to commodity price volatility for steel and brass raw materials(p.152)
- • Dependency on global bearing manufacturers and automotive industry cyclicality(p.162)
- • Regulatory and environmental compliance risks across multiple jurisdictions(p.166)
- • Potential business disruptions from government lockdowns and natural disasters(p.164)
- • Risks related to overseas subsidiaries and complex multinational operations(p.152)
- • Significant exposure to foreign currency fluctuations across major currencies(p.274)
- • Volatile raw material commodity prices directly impacting profitability(p.274)
- • Dependence on cyclical automotive and industrial sectors(p.272)
- • Material litigation involving subsidiary regarding land use rights in China(p.300)
- • MSME creditor dispute with outstanding payment demands(p.297)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajendra Shah | Promoter/Promoter Selling Shareholder | 19.95% | — |
| Harish Rangwala | Promoter/Promoter Selling Shareholder | 17.45% | — |
| Vishal Rangwala | Promoter | 10.06% | — |
| Pilak Shah | Promoter/Promoter Selling Shareholder | 9.97% | — |
| Charusheela Rangwala | Promoter Group/Promoter Group Selling Shareholder | 16.47% | — |
| Nirmala Shah | Promoter Group/Promoter Group Selling Shareholder | 12.46% | — |
| Rajendra Shah | Promoter | 19.95% | 16.93% |
| Harish Rangwala | Promoter | 17.45% | 14.81% |
| Vishal Rangwala | Promoter | 10.06% | 8.53% |
| Pilak Shah | Promoter | 9.97% | 8.46% |
| Charusheela Rangwala | Promoter Group | 16.47% | 13.97% |
| Nirmala Shah | Promoter Group | 12.46% | 10.57% |
| Harish Rangwala | Promoter | — | — |
| Rajendra Shah | Promoter | — | — |
| Vishal Rangwala | Promoter | — | — |
| Pilak Shah | Promoter | — | — |
| Rajendra Shah | Promoter | — | — |
| Harish Rangwala | Promoter | — | — |
| Vishal Rangwala | Promoter | — | — |
| Pilak Shah | Promoter | — | — |
| Mr. Harish Rangwala | Promoter | 26.51% | — |
| Mr. Rajendra Shah | Promoter | 19.95% | — |
| Mr. Pilak Shah | Promoter | 9.97% | — |
| Mr. Vishal Rangwala | Promoter | 1.00% | — |
| Ms. Charusheela Rangwala | Promoter Group | 17.36% | — |
| Ms. Nirmala Shah | Promoter Group | 14.95% | — |
| Ms. Tanvi Rangwala | Promoter Group | 1.99% | — |
| Rajendra Shah | Promoter/Chairman and Whole-time Director | — | — |
| Harish Rangwala | Promoter/Managing Director | — | — |
| Vishal Rangwala | Promoter (Second generation) | — | — |
| Pilak Shah | Promoter (Second generation) | — | — |
| Rajendra Shah | Promoter Selling Shareholder | — | — |
| Harish Rangwala | Promoter Selling Shareholder | — | — |
| Pilak Shah | Promoter Selling Shareholder | — | — |
| Charusheela Rangwala | Promoter Group Selling Shareholder | — | — |
| Nirmala Shah | Promoter Group Selling Shareholder | — | — |
Leadership
Rajendra Shah · Chairman
Harish Rangwala · Managing Director
Vishal Rangwala · CEO
Maulik Jasani · CFO
Kiran Mohanty · Company Secretary and Chief Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Harsha Engineers International IPO FAQs
What is the lot size of Harsha Engineers International IPO?
The minimum lot size of Harsha Engineers International IPO is 45 shares. One lot costs ₹14,850 at the cut-off price.
When does Harsha Engineers International IPO open and close?
Harsha Engineers International IPO opened for subscription on 14 Sep 2022 and closed on 16 Sep 2022.
What is the listing date of Harsha Engineers International IPO?
Harsha Engineers International IPO listed on 26 Sep 2022.