Harsha Engineers IPO hit the market on 14 September 2022 and is scheduled to go live on bourses on 26 September 2022. Here is a look at what the Harsha Engineers IPO grey premium is indicating for investors. If you are among the lucky allottees and are interested in checking Harsha Engineers listing estimates, read on for more.
The company planned to raise INR 755 crore from the IPO priced at INR 314 – 330 per equity share. It has issued fresh equity shares worth INR 455 crore, while the promoters and existing investors of the company have sold shares worth INR 300 crore in this public offering.
The response to Harsha Engineers IPO was quite different from others. The IPO was subscribed at the average rate of 74.6 times. Retail investor category, which usually have the highest demand, was oversubscribed 17.5 times but was superseded by the NII category which saw subscription of 71.3 times. Nevertheless, the real surprise was the QIB demand with 178.3 times subscription.
Harsha Engineers IPO Subscription
| Category | Shares Offered | Day 1 | Day 2 | Day 3 |
| QIB | 47,92,950 | 0.06 | 1.63 | 178.26 |
| NII | 35,94,780 | 5.83 | 24.91 | 71.31 |
| Retail | 83,87,730 | 3.22 | 9.14 | 17.53 |
| Employee | 88,335 | 2.33 | 6.34 | 11.97 |
| Total | 1,68,63,795 | 2.87 | 10.35 | 74.65 |
Subscription figures in number of times, at 5 PM
Since the subscription rates are quite high, allotment has been understandably difficult and only few lucky ones have received shares. Nevertheless, high subscription demand usually augurs well for listing performance and this is no different in the case of Harsha Engineers.
Read Also: 5 tips to increase IPO allotment chances
Harsha Engineers listing estimate (GMP analysis)
Given the wide fluctuations in the secondary market, Harsha Engineers IPO grey premiums have also moved up and down. Thankfully, these movements never pushed the IPO grey premiums in the negative zone. The highest GMP was observed at INR 225 per share on 16 September 2022. This represented a premium of slightly above 68% over the higher end of the price band. The average GMP of the IPO in all these days stands at INR 191 per share, still indicating a premium of 57.9% from IPO allotment price.
Strong IPO Grey Market Premium is usually an indicator of the IPO making a debut with smart listing gains and it is no different in this case. Harsha Engineers IPO grey premium has come down to INR160 per share but it still translates to 48.5% of allotment price and indicates to a strong possibility of listing above INR490 per share. Please note that this Harsha Engineers listing view is purely based on GMP movements.
Harsha Engineers IPO Grey Premium Daily Trend
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 24 Sep 2022 | 160 | – | – |
| 23 Sep 2022 | 150 | – | – |
| 22 Sep 2022 | 150 | 450 | 5,500 |
| 21 Sep 2022 | 180 | 500 | 5,500 |
| 20 Sep 2022 | 200 | 550 | 6,000 |
| 19 Sep 2022 | 220 | 600 | 6,000 |
| 17 Sep 2022 | 220 | 600 | 6,000 |
| 16 Sep 2022 | 225 | 600 | 6,000 |
| 15 Sep 2022 | 210 | 550 | 5,200 |
| 14 Sep 2022 | 200 | 500 | 5,000 |
| 13 Sep 2022 | 200 | 500 | 5,000 |
| 12 Sep 2022 | 200 | 550 | 5,200 |
| 9 Sep 2022 | 170 | 500 | 5,000 |
What should you do post-listing?
While it is likely that the stock will open with gains, a more important question for allottees is what to do afterwards. This has become more critical amid wild movements in the secondary markets and the uncertainty caused by monetary tightening across the globe.
Fundamentally, the company is doing well and is likely to continue this streak now that the fortunes of the automotive industry are changing for good. It helps that the management has also guided for better quarters ahead and a number of brokers have given positive calls on the IPO. While positive Harsha Engineers IPO grey premium is likely to provide a great start to the stock, there is no surety that it will not come down in the next few days. Therefore, booking partial profits may not be a bad strategy for investors with a short term view.
