Endurance Technologies, which had issued shares at Rs 472 per share in the recently-concluded initial public offering (IPO), brought cheers to investors when it got listed on Wednesday. The shares debuted with 21 percent premium at Rs 570 per share and rose further to Rs 616 during the day. This is in sharp contrast to the tepid listing of ICICI Prudential Life Insurance shares at 1.5 percent below the issue price of Rs 334 per share, on September 29, 2016.
The Rs 1,160-crore public issue of Endurance Technologies was oversubscribed almost 44 times at the end of its three-day IPO on October 7, though the retail portion was oversubscribed by a mere 2.60 times though qualified institutional buyers (QIBs) showed active interest, with their portion securing oversubscription of 53.43 times.
The auto components maker had 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.
Snapshot of Endurance Technologies (based on draft prospectus filed with Sebi):
Net profit was Rs. 289.83 crore on sales of Rs. 5,240.55 crore in 2015-16.
For FY2015 and FY2016, revenue from overseas sales was 31.3 percent and 32.5 percent, respectively, of total revenues.
The top two customers are Bajaj Auto and FCA Italy S.p.A and its group companies in Europe.
In FY2015 and FY2016, Bajaj represented 43.19 percent and 40.83 percent of net revenues from operations (including intermediary sales), respectively.
FCA Italy S.p.A. represented 14.20 percent and 15.29 percent of net revenues from operations for FY2015 and FY2016, respectively.
As of March 31, 2016, there were 1,945 employees working for the company.
There are 18 manufacturing facilities in India.
On Wednesday, the BSE Sensex was trading 46 points lower at 28,004 while the NSE Nifty was down 12 points to 8,666 at around 12.23 p.m.
ICICI Prudential Life Insurance shares were trading at 329.10 apiece on BSE, down 0.33 percent from their previous close and below the issue price. ICICI Bank was also trading in the red at Rs 265.70 after rallying for two days.
The current IPO that is making news is that of PNB Housing Finance. The price band for the issue has been fixed at Rs 750-775 per share for the Rs 3,000-crore initial public offering.