The Harsha Engineers Grey Market Premium Declined Over 60% Before IPO listing

Amid erratic local stock markets, Harsha Engineers International Ltd’s grey market premium dropped by approximately 60% before the listing of the stock. However, Monday is the listing date for the stock in the market. Harsha Engineers International Ltd is a producer of sophisticated bearing cages.

The GMP of the Harsha Engineers was quoted at Rs 240 at its pinnacle. Priced at 240 was 72 percent more than the issue price at the moment the IPO closed. After that, the trader who doesn’t want to disclose his identity said, it started to decline. It was quoted at Rs 180 on Friday, then on Saturday it again dropped to Rs 150 per share. According to him, it was between Rs. 135 and 140 on Sunday.

Harsha Engineers IPO GMP

The IPO was subscribed approximately 75 times with a total issue size of Rs 755 crore. The issue consists of an Offer for sale and a fresh issue. The fresh issue was the value of Rs 455 crore. The offer for sale was valued up to Rs 300 crore, which might be done by promoters and shareholders.

Initially, the price band of the Harsha Engineers’ IPO was set at Rs 314-330 per share. The P/E valuation of each share was set at 31.3x-32.7x its FY2022, followed by the dilution of IPO EPS. The firm’s economic prospects are favorable, according to experts, given its substantial market position in bearing cases and its excellent client ties.

Current Market Scenario

For the third consecutive session, the Nifty and Sensex both plummeted, falling 2.7 percent each. Followed by the US Federal Reserve raised prices and signaled that it might tighten, even more, and global equities started to decline, which contributed to the market instability.

Currently, it can be seen that the Indian stock market has once again shown a declining curve. It is a potential threat for both long-term and short-term investors. Long-term investors won’t get much profit at the time of selling the shares. Meanwhile, short-term investors might lose their money.