Harsha Engineers, the largest manufacturer of precision bearing cages in India's organized sector in terms of capacity and operations, filed a draft red herring prospectus (DRHP) with markets watchdog Sebi on August 20, 2018.
The Initial Public Offering (IPO) comprises a public offer of equity shares of Harsha Engineers consisting of a fresh issuance aggregating up to Rs370cr and an offer-for-sale of up to 331,250 equity shares by Rajendra Shantilal Shah; up to 331,250 equity shares by Harish Ranjit Rangwala; up to 331,250 equity shares by Nirmala Rajendra Shah; and up to 331,250 equity shares by Charusheela Harish Rangwala. The offer also includes a reservation for subscription by eligible employees. The offer less the employee reservation portion is referred to as the 'net offer'.
The company proposes to utilize the net proceeds for: (a) Pre-payment or scheduled repayment of certain indebtedness availed by the company; (b) Purchase of machinery in India; (c) Investment in subsidiaries: (i) Investment in Harsha Engineers Europe SRL by way of equity infusion; and (ii) Investment in Harsha Precision Bearing Components (China) Co. Ltd., in the form of debt capital; (d) Infrastructure development for our existing facilities in India; and (e) General corporate purposes.
Axis Capital Ltd and Edelweiss Financial Services Ltd are the book running lead managers.
The equity shares will be listed on the BSE and the NSE.