Endurance Tech stock opened at Rs.570, a 21% premium to the issue price and touched a high and a low of Rs.655 and Rs.570 a share respectively Shares of Endurance Technologies Ltd closed 37.22% higher on their trading debut after the Aurangabad-based automobile parts maker’s Rs.1,160-crore initial public offer was subscribed 43.7 times last week.
This is the maximum listing day gain in three months after Quess Corp Ltd shares closed 58.7% higher on debut.
Endurance Technologies shares closed at Rs.647.70 a share compared to the issue price of Rs.472. The stock opened at Rs.570, a 21% premium to the issue price and touched a high and a low of Rs.655 and Rs.570 a share respectively. India’s benchmark 30-share Sensex index closed 0.24% lower at 27,984.37 points.
On Wednesday, rivals Bharat Forge fell 0.88%, Munjal Showa Ltd closed flat, Mahindra CIE Automotive Ltd fell 1.3% and Rico Auto Industries Ltd gained 3.03%.
The Endurance IPO was a pure offer for sale by existing investor Actis and promoter Anurag Jain. While Actis sold 19.29 million shares exiting the company, Jain sold 5.3 million shares. Actis bought the Endurance stake in 2011 for $70 million (approximately Rs.373 crore) from Standard Chartered Private Equity.
On 4 October, the company raised around Rs.348.50 crore by allotting 73.84 lakh shares to anchor investors by selling shares at Rs.472 apiece. The government of Singapore, Monetary Authority of Singapore, Nomura, Goldman Sachs and Amundi were allocated shares in the anchor allotment. Domestic investors such as ICICI Prudential, Reliance Capital, UTI Mutual Fund, Axis Mutual Fund and Birla Sun Life subscribed to shares in the anchor book.
Broking firms KR Choksey, India Nivesh, Spa Securities and Phillip Capital had given subscribe rating to the issue.
According to a KR Choksey report dated 5 October, Endurance’s presence in multi-component auto products, increasing customer base, strong relationship with original equipment manufacturers and presence across geographies will help the company improve its revenue visibility in the coming days. Its focus on improving research and development capabilities in order to focus on advanced technology and high value-add products will ensure consistent profitable growth, the report said.
In 2015-16, the company’s net sales rose 6.6% to Rs.5,240.6 crore. Net profit rose 15% to Rs.291.2 crore. The company had a total debt of Rs.956.59 crore at the end of June.
Endurance was established in 1985 as Anurang Engineering Co. Pvt. Ltd to manufacture aluminium die casting products in Aurangabad, Maharashtra. The company derives almost 44% of its revenue from its aluminium casting business and the rest comes from suspension, transmission and braking products. Endurance has 24 manufacturing facilities—17 in India, five in Italy and two in Germany.
It counts Bajaj Auto Ltd, Honda Motorcycle & Scooter India Ltd, Royal Enfield, India Yamaha Motor, Hero Motorcorp, Mahindra & Mahindra and Tata Motors among its customers.
Axis Capital and Citigroup Global Markets are the book-running lead managers to the issue.