According to stock market experts, despite losing steam in the grey market, Harsha Engineers IPO may give handsome gain to its allottees. They said that Harsha Engineers IPO GMP (grey market premium) might have dipped from ₹240 to ₹150 per share levels (according to market observers, Harsha Engineers share price is quoting at a premium of ₹150 per share in grey market today), but allottees may expect up to 50 per cent listing gain from then public issue on its listing date. They said that grey market is not an ideal indicator about the success or failure of a public issue and Harsha Engineers shares are expected to prove that through a 'grand debut' in stock market today.
Expecting strong gain from Harsha Engineering IPO listing, Astha Jain, Senior Research Analyst at Hem Securities said, "We are expecting Harsha Engineers shares to list at 40 to 45 per cent premium to issue price. We recommend to book partial profit while remaining can be kept for long term as company being comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries has long standing relationships with leading clientele. Company’s strategically located domestic and international production facilities and warehouses & expertise in tooling, design development and automation with consistent track record of growth and financial performance is looking strong to us."
Harsha Engineers IPO listing price prediction
On expected Harsha Engineers IPO listing price, Prashanth Tapse, Research Analyst & Sr VP — Research at Mehta Equities Ltd said, "Despite uncertainty in the equity markets, Harsha Engineers is signaling a strong debut with a significant premium over its issue price of ₹330/- per share. Considering the excellent response from the investor category, we assume that Harsha Engineers could list around ₹480 to ₹500 levels, which translates to more than 45 to 51 per cent premium over the upper end of the IPO price band."
The Mehta Equities analyst went on to add that on valuation per se the ask price is fairly valued when compared to its industry peers. "We are very optimistic on Harsha Engineers with its dominant position and well placed to tap the growth in specialized precision components and bearing cage demand across all the industries," he said.
Expecting 'grand debut' of Harsha Engineers shares on Dalal Street, Aayush Agrawal, Senior Research Analyst at Swastika Investmart said, "We believe that the company may surprise the markets and might make a grand debut to list above its grey market premium. The company’s strong fundaments, competitive advantages like high entry barriers and switching costs, experienced management team, and robust growth outlook explains the healthy GMP. Further, the company is a proxy play on India becoming the global manufacturing hub. Our recommendation for the investors is to hold the allotted shares and long-term investors can accumulate the stock on dips."
Harsha Engineers share price in grey market today
According to market observers, Harsha Engineers IPO GMP today is ₹150, which means grey market is expecting that the public issue may list around ₹480 ( ₹330 + ₹150), which is around 45 per cent higher from its upper price band of ₹330 per equity share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
