Endurance Technologies lists at R572, up 21% over issue price
Automotive component manufacturer, Endurance Technologies made a strong debut on the bourses on Wednesday. The stock ended the session at R647.70 apiece, after listing at R572 a premium of 21% over the issue price of R472. Post listing, the stock commands a market capitalisation of R9,110.73 crore.
The R1,161 crore IPO was subscribed 43.69 times with investors bidding for 75.28 crore shares of the total 1.72 crore shares on offer. The issue was a pure offer for sale (OFS) of 2.46 crore equity shares by Actis Components and System Investments and Anurag Jain, Managing Director of the company. Through the issue, Actis Components and System Investments exited by selling 1.92 crore shares and Anurag Jain diluted his stake in the company by around 6.5% or 53 lakh shares.
On October 4, the company raised approximately R348.52 crore by allotting 73.83 lakh shares to anchor investors at a price of R472 apiece. Among the investors who were allotted shares in the pre IPO placement include Goldman Sachs, Nomura, HSBC, Government of Singapore, HDFC Mutual Fund and Reliance Capital Trustee among others.
Endurance Technologies ended 2016 with revenues of R5,274.5 crore, up 6.5% compared to R4,949.4 crore in 2015. Total expenses grew by 5.9% at R4,860.9 crore from previous year’s R4,590 crore. Net profit during the same period was up 15.38% at R291 crore from previous year’s R252 crore.
The company manufactures components for two and three wheeler automotive. Endurance also has its operations in Europe with manufacturing facilities in Italy and Germany. The product portfolio of the company includes raw and aluminum castings, steel and cast iron and engineering plastic parts. Bajaj, Royal Enfield, Honda Motorcycle and Yamaha were the largest customers of the company in FY16. Axis Capital and Citigroup Global Markets India are the book running lead managers (BRLMs) to the issue.