Harsha Engineers International shares started off the first day first trade with a massive 36 percent premium over issue price on September 26 despite nervousness in equity markets. The momentum in the stock is backed its IPO subscription numbers, strong financials, and robust growth prospects.
The stock opened at Rs 450 on the NSE, up 36.36 percent over the issue price of Rs 330, while the opening tick on the BSE was Rs 444, up 34.55 percent.
The traded volumes in the opening trade was 24.56 lakh shares on the NSE, and 1.69 lakh shares on the BSE.
"The company’s good listing can be attributed to the outstanding prospects and a phenomenal response from investors," Santosh Meena, Head of Research, Swastika Investmart, said.
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 make this stock a strong candidate for long-term investing, he said.
Harsha Engineers is the largest manufacturer of precision bearing cages in India with more than 50 percent share in the organised market, and also one of the leading players globally with a market share of 6.5 percent for brass, steel and polyamide cages.
It has raised Rs 755 crore from the public issue with a strong 74.70 times subscription during September 14-16. Out of the total issue size, Rs 455 crore has been raised through fresh issuances that will be used in repayment of debts, capital expenditure towards purchase of machinery, and existing production facilities.
The price band for the offer was Rs 314-330 per share.
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The company is a proxy play on India becoming the global manufacturing hub. "Those who applied for listing gains can maintain a stop-loss at Rs 400,” said Meena. He advised investors to hold the allotted shares and suggested that long-term investors can accumulate the stock on dips.
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