Harsha Engineers files DRHP for Rs. 755 Cr IPO

Ahmedabad based Harsha Engineers has filed DRHP with Sebi for its Rs. 755 Cr IPO. The IPO consists of Fresh issue of Rs. 455 Cr and Offer for sale of Rs. 300 Cr.

The promoters of the company are Rajendra Shah ,Harish Rangwala , Vishal Rangwala & Pilak Shah

The Company proposes to utilise the Net Proceeds towards funding the following objects:
(a) Pre-payment or scheduled repayment of a portion of the existing borrowing availed by the Company;
(b) Funding capital expenditure requirements towards purchase of machinery;
(c) Infrastructure repairs and renovation of the existing production facilities including office premises in India

Harsha Engineers is the largest manufacturer of precision bearing cages, in terms of revenue, in organsied sector in India, and amongst the leading manufacturers of precision bearing cages in the world. It offers diversified suite of precision engineering products across geographies and end-user industries. Its business comprises: (i) engineering business, under which it manufactures bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings; and (ii) solar EPC business, under
which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.

It has approximately 50% of the market share in the organised segment of the Indian bearing cages market and 5.2% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in CY 2020 .It offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter and its bearing cages find its application in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewables sectors etc.

It is a technology driven company with a strong focus on quality, design and tool development.
As of September 30, 2021, it has been able to manufacture more than 7,205 bearing cages and more than 295 other products for customers in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewables sectors, allowing it to meet changing customer requirements. In addition, over the past three years its product development and innovation centre has
developed more than 1,200 products in different bearing types.
Harsha has been able to leverage its tooling capabilities and the expertise developed in the stamping employed for manufacture of steel cages to diversify and grow its stamping components business.
Its capability extends to manufacturing high quality precision components as well as semi
assembled modular units. It has recently expanded its product portfolio to introduce sand casting, value added stamping components, bronze bushings etc. to cater to more end user industries such as wind, mining and shipping sectors. While the automotive segment is shifting towards the electric vehicles, it believes its impact on it will be limited as it is not manufacturing needle bearings cages which are engine components.