Endurance Technologies, an auto ancillary company, raised Rs. 348.52 crore by issuing 73.84 lakh (7.38 million) shares to anchor investors at the upper end of the price band of Rs. 467-472 per equity share. The investors included HDFC MF, Nomura, Singapore government, DSP Blackrock, Goldman Sachs and HSBC.
The Aurangabad-based company's Rs. 1,160-crore initial public offering (IPO) opened on Wednesday (Oct.5); it will close on Friday(Oct. 7). The non-anchor portion comprises 17.23 million shares. The issue saw 2 percent subscription, or applications for 3,70,410 shares by 11.30 a.m.
The company's public issue comprises 24.61 million shares being offloaded via the offer-for-sale route by its promoter Anurag Jain (5.32 million shares) and existing investor Actis Components and System Investments (19.29 million shares).
The price-earnings ratio at the lower and upper end of the price band works out to 22.80 and 32.28, respectively, while the issue size is in the range of Rs.1,149 crore to Rs. 1,161 crore.
Post-IPO, the promoter shareholding will come down to 82.50 percent from the current 86.28 percent, according to brokerage Angel Broking's analysis of the IPO.
Anurag Jain's current holding of 42.1 percent will come down to 38.4 percent after the issue.
Endurance Technologies earned net profit of Rs. 290 crore on total sales of Rs. 5,241 crore in 2015-16. A business risk for the company is that less than five clients contribute to more than half of its revenues.
"Endurance has high client concentration with top three clients contributing 58% of its revenues. In FY2010, Bajaj Auto contributed 51.5% of its total revenues which has come down to 38 percent
in FY2016 due to the de-risking measures taken by the company. Endurance continues to add more clients in India and Europe and this strategy is expected to decline its client concentration significantly," Angel Broking said in its note.