Harsh Engineers IPO listing: According to dealers, premium in the grey market suggests a strong listing on BSE and NSE for Harsha Engineers.
Harsha Engineers International — an Ahmedabad-based precision bearing cage manufacturer — is all set to make a debut on exchanges BSE and NSE on Monday. According to dealers, Harsha Engineers commanded a premium of Rs 170-240 in the grey market — or an unofficial market for unlisted securities — since the launch of its IPO, which saw a robust response from investors across categories.
Harsha Engineers International's IPO, to raise up to Rs 755 crore, was open for subscription from September 14 to 16 wherein potential investors could bid for the company's shares in a price band of Rs 314-330 apiece in multiples of 45. The IPO was a combination of fresh issuance of shares worth up to Rs 455 and an offer for sale (OFS) by existing shareholders.
"Harsha Engineers got a voluminous subscription due to its decent prospects and pricing. However, a global sell-off may become a culprit and dent the listing prospects to some extent," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
| Date | Grey market premium (in rupees) |
| Sept 24 | 170 |
| Sept 23 | 170 |
| Sept 22 | 240 |
| Sept 21 | 240 |
| Sept 20 | 240 |
| Sept 19 | 240 |
| Sept 17 | 240 |
| Sept 16 | 235 |
| Sept 15 | 225 |
| Sept 14 | 210 |
| (Source: IPO Watch) | |
"Nonetheless, Harsha Engineers is expected to make a strong debut and list in the Rs 450-500 range, rewarding applicants generously," Doshi said.
Harsha Engineers' was the fourth initial share sale to hit Dalal Street within a little over a month, following the primary market offerings of Syrma SGS, DreamFolks and Tamilnad Mercantile Bank.
Many brokerages had recommended subscribing to the Harsha Engineers IPO.
| Brokerage | Recommendation |
| Motilal Oswal | Subscribe for listing gains |
| Ventura Securities | Subscribe |
| Angel One | Subscribe |
| Choice Broking | Subscribe |
| Arihant Capital | Subscribe for long term |
| BP Wealth | Subscribe for long term and for listing gains |
| LKP Securities | Subscribe |
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