Shares of Harsha Engineers International Ltd made a strong debut on Dalal Street today. The stock listed on BSE at ₹444 per equity share, delivering around 36 per cent premium to its allottees. India's largest manufacturer of precision bearing cages company has delivered stellar return to its investors despite weakness on Dalal Street in last four straight sessions.
Highlighting the reason behind strong listing of Harsha Engineers shares, Santosh Meena, Head of Research at Swastika Investmart said, “Strong listing of Harsha Engineers shares can be attributed to outstanding prospects and a phenomenal response from the investors. The company’s strong fundaments, competitive advantages like high entry barriers and switching costs, experienced management team, strategically located manufacturing facilities and robust growth outlook makes this stock a strong candidate for long-term investing."
Advising Harsha Engineers IPO allottees to book partial profit after strong listing, Astha Jain, Senior Research Analyst at Hem Securities said, "recommend to book partial profit while remaining can be kept for long term as company being comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries has long standing relationships with leading clientele."
Prashanth Tapse, Research Analyst & Sr VP — Research at Mehta Equities saiid, "We advise that allotted investors should look at booking profits for such healthy listings in current market scenario, while risk takers can hold for a long-term perspective... and if investors wish to add Harsha Engineers on listing day, it is better to wait and watch before taking any aggressive approach."
The combo of fresh issue and OFS is highest subscribed public issue of this year. In three days' bidding, the public issue worth ₹755 crore was subscribed 74.70 times whereas its retail portion was subscribed 17.63 times. The QIB portion of the public issue was subscribed 178.26 times while the public offer got subscribed 71.32 times in NII category.
The company has already made it clear that the net proceeds of the public issue will be used for debt repayment and funding of capital expenditure needs like machine purchase, renovation, repair, etc.
The public issue was offered at a price band of ₹314 to ₹330 per equity share.