New Delhi: Harsh Engineers International (HEIL) is all set to debut on Dalal Street on Monday but investors need to trim down their listing expectations from the company amid rising market volatility.

Shares of Harsha Engineers are losing steam in the gray market as sentiments turn sour in the secondary market. Over the issue price of Rs 330, the company’s shares are being exchanged at a premium of Rs 160-165, which was Rs 240 at its peak.

The company’s gray market premium has been wiped off by one-third on the back of rising weakness in the market and inflation fears. That said, the company is expected to deliver a strong listing pop.

Global market selloff could dent Harsha’s listing prospects, said Abhay Doshi, co-founder, UnlistedArena.

“However, owing to strong response for IPO, Harsha Engineers remains to be a strong listing contender and can yield up to 50-60% gains on listing,” he added.

Harsha Engineers International is the largest manufacturer of precision bearing cages, in terms of revenue, in the organized sector in India, and among the leading manufacturers of precision bearing cages in the world.

Amarjeet Maurya, AVP – Mid Caps, Angel One said, “In terms of valuations, the post-issue P/E works out to 32.7x FY22 EPS. Considering the company’s strong performance along with reasonable valuations, we are expecting healthy listing gains. ”

Harsha Engineers raised Rs 755 crore via its initial stake sale, which remained open for subscription between September 14-16. The company sold its shares in the range of Rs 314-330 apiece.

The issue was subscribed 74.7 times overall, with the quota of QIB investors fetching a whopping 178.26 times subscription. Portions for HNI, retailers and employees were subscribed 71.32 times, 17.63 times and 12.07 times, respectively.

The company will make its debut on Monday, September 26.

Prashanth Tapse, Research Analyst Sr VP Research, Mehta Equities said despite uncertainty in the equity markets, Harsha Engineers is signaling a strong debut with a significant premium.

“Considering the excellent response from the investor category, we assume that Harsha Engineers could list around Rs 480-500, which translates to a more than 45-51% premium over the upper end of the IPO price band,” he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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