Harsha Engineers International, a manufacturer of precision bearing cages, unveiled its initial public offering (IPO) for subscription on Wednesday. On the first day, the IPO got fully subscribed, receiving bids for 3,24,61,830 shares against 1,68,63,795 on offer, The Mint reported. Thus, the IPO received 1.92 times subscription on Day 1.
According to the report, the company has fixed the price band at ₹314-330 per share. The subscription ends on Friday, September 16. The market observes say the company’s shares are available at a premium of ₹203 at the grey market.
In simple terms, a grey market is also called a parallel market. It is an unofficial stock and applications market. According to popular trading app Groww, trading in grey market is done in cash and person.
Harsha Engineers’ IPO is worth ₹755 crore and it comprises fresh issue of equity shares aggregating to ₹455 crore. It has an offer-for-sale of up to ₹300 crore. The stocks are expected to be listed on the Bombay Stock Exchange and National Stock Exchange on September 26, the Mint report added.
The proceeds from the issue worth ₹270 crore will be used for debt payment. On the other hand, proceeds up to ₹76 crore will be used for funding capital requirements to buy machinery while ₹7 crore will be used for infrastructure repairs and renovation of existing production facilities.
Harsha Engineers International is based in Ahmedabad, It has five manufacturing facilities including two of them at Changodar and Moraiya near Ahmedabad, Changshu in China and Ghimbav Brasov in Romania. The company has manufactured more than 7,205 bearing cages and 295 other products. The company’s product development and innovation center has developed more than 1,200 products.