Mumbai September 28, 2016 (GPN) : Endurance Technologies Limited (the “Company”) proposes to open on Wednesday, October 5, 2016, an initial public offering of up to 24,613,024 equity shares of face value of Rs. 10 each (the “Equity Shares”) at a price band from Rs. 467 to Rs. 472 per Equity Share consisting of an Offer for Sale of up to 19,295,968 Equity Shares by Actis Components and System Investments Limited (“Actis”) and up to 5,317,056 Equity Shares by Mr. Anurang Jain (“Promoter Selling Shareholder”) (collectively, the “Selling Shareholders”) (the “Offer For Sale” or the “Offer”). The Offer shall constitute up to 17.50% of the fully diluted post-Offer paid-up equity share capital of the Company. The Offer will close on Friday, October 7, 2016. Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.
The Company and Selling Shareholders, in consultation with the BRLMs, may consider participation by Anchor Investors, in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“ICDR Regulations”). The Anchor Investor Bidding Date shall be one Working Day prior to the offer Opening Date.
The Equity Shares offered through the Offer are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
The Offer is being made through the book building process, in reliance on Regulation 26(1) of the ICDR Regulations wherein not more than 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”); Provided that the Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors) and Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Issue shall be available for allocation to Retail Individual Investors, in accordance with the ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily utilize the ASBA process providing details of their respective bank accounts, which will be blocked by the SCSBs to participate in the Offer.
The Company is the largest two-wheeler and three-wheeler automotive component manufacturer in India in terms of aggregate revenue for FY2015 from its selected product segments (Source: CRISIL Research). It also has operations in Europe with highly-automated manufacturing facilities in Italy and Germany. Tier one companies are companies that directly supply to original equipment manufacturers (“OEMs”), and the Company is a tier one supplier to OEMs for most of its products. According to the Aluminium Casters’ Association of India, the Company is the number one aluminium die-casting company in India in terms of actual output and installed capacity in FY2016. The Company is a complete solutions provider, providing end-to-end services by engaging its customers from conception to end-user delivery. Its development process includes design, development, validation, testing, manufacturing, delivery and aftermarket sale service for a wide range of technology-intensive auto component products leading to better customer satisfaction and diversification of its customer base. The Company is an innovation-driven company with strong focus on research and development (“R&D”), which allows it to develop new products suited to customer requirements. In India, the Company manufactures a diverse range of technology-intensive automotive components for the two-wheeler and three-wheeler segments. The Company also manufactures specified components for four-wheeler passenger vehicles, light commercial vehicles and heavy commercial vehicles. The Company’s customers in India and Europe include leading domestic and global OEMs. In FY 2016, its largest customers in India were Bajaj, Royal Enfield, Honda Motorcycle and Yamaha. It has a long-standing relationship with Bajaj, which is its largest customer. In addition to these customers, the Company also supplies to a variety of other OEMs in India, such as Hero, Mahindra, Tata, Suzuki, H-D Motor Company India Pvt. Ltd, Fiat India and a leading Indian motorcycle OEM. In Europe, the Company’s largest customer is FCA Italy S.p.A., and it supplies components used in the engines of a variety of FCA Italy S.p.A.’s brands, such as Jeep, Chrysler, Alfa Romeo, Abarth, Fiat and Lancia (Jeep, Chrysler, Alfa Romeo, Abarth, Fiat and Lancia are registered trademarks owned by the FCA Group). The Company also supplies to Daimler and other reputable four-wheeler OEMs operating from Europe. The Company has 25 plants across India, Italy and Germany.