Harsha Engineers International, a manufacturer of precision bearing cages, has filed a preliminary prospectus with markets regulator Sebi to raise ₹755 crore through an initial public offering (IPO).
The public issue 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, according to the draft red herring prospectus (DRHP).
The OFS comprises up to ₹66.75 crore by Rajendra Shah, up to ₹75 crore by Harish Rangwala, up to ₹16.50 crore by Pilak Shah, up to ₹75 crore by Charusheela Rangwala and up to ₹66.75 crore by Nirmala Shah.
The offer includes a reservation for subscriptions by eligible employees.
Proceeds from the fresh issue will be utilised to the tune of up to ₹270 crore for debt payment, up to ₹77.95 crore for funding working capital requirements towards the purchase of machinery, up to ₹7.12 crore for infrastructure repairs and renovation of the existing production facilities and general corporate proposes.
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.
The company has five manufacturing facilities with two of its principal facilities at Changodar and one at Moraiya, near Ahmedabad in Gujarat, and one manufacturing unit each at Changshu in China and Ghimbav Brasov in Romania, which allow access to its customers in over 25 countries.
Harsha Engineers has reported a profit of ₹45.44 crore and revenue of ₹873.75 crore for FY21, with two-thirds of the income coming from outside India for the last three fiscals.
For the six months ended September 30, 2021, it clocked a profit of ₹43.71 crore and revenue of ₹629.46 crore.
Axis Capital, Equirus Capital and JM Financial are the book running lead managers to the issue.
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