Stock Market

Endurance Tech IPO to open on Oct 5, price band at Rs 467-472

Chillicious Bureau

Maharashtra-based auto component maker Endurance Technologies’ public issue is set to hit the capital market on October 5. The company has fixed a price band of Rs 467-472 per share.

It is an offer for sale by selling shareholders Actis Components and Anurang Jain (managing director); hence the company will not get any money from the issue that will close on October 7.

Investors can bid for a minimum of 30 equity shares and in multiples of 30 equity shares thereafter.

Endurance Technologies manufactures a diverse range of technology-intensive automotive components for two-wheeler and three-wheeler segments. It also manufactures specified components for four-wheeler passenger vehicles, light commercial vehicles and heavy commercial vehicles.

Its largest customers in India are Bajaj Auto, Royal Enfield, Honda Motorcycle & Scooter India and India Yamaha Motor. It also supplies auto components to Hero Motorcorp, Mahindra & Mahindra, Tata Motors, HD Motor Company, Fiat India Automobiles. In Europe, its largest customer is FCA Italy SpA and group companies.

The company has 25 plants across India, Italy and Germany. In addition, it is currently in the initial stages of planning an automotive proving ground (test track) in Aurangabad, Maharashtra, India, which it expects to be operational by the end of 2018.

Currently it has consolidated debt of Rs 712 crore and debt to equity ratio at 0.41.

Equity shares are proposed to be listed on BSE and NSE.

The book running lead managers to the issue are Axis Capital and Citigroup Global Markets India while Link Intime India is the registrar to the offer.

Below is the verbatim transcript of Anurang Jain’s interview to Latha Venkatesh and Anuj Singhal on CNBC-TV18.

Q: Are there any plans to grow inorganically?

A: Looking at our cash flows what we have seen at this point we don\’t have any inorganic opportunity which we have in mind today, it can happen in future, we don’t know. But looking at our cash flow which we have in our business, consolidated business we didn\’t feel a need to take any more money in the company. So, that was a reason.

Q: You currently have a net debt of about Rs 712 crore as you just mentioned. Are you comfortable with that debt figure. I understand that your net debt has come down, but do you feel the need to dilute any more debt at this point?

A: No, we are quite comfortable because net debt to equity is 0.4:1. For me up to 1:1 is fine. But I am very comfortable with 0.4:1.