The initial public offering (IPO) of Endurance Technologies was subscribed 0.92 times on the second day, Thursday, as investors bid for 1.58 crore shares of the total 1.72 crore shares on offer. The company has priced its IPO aimed at raising `1,161 crore (when calculated at the upper end of the price band), between `467 and `472 per share.
Qualified institutional buyers (QIBs) bid for 83.44 lakh shares of the total 49.22 lakh shares on offer, 1.7 times their quota. High net-worth (HNIs) individuals bid for 4.79 lakh shares of the 36.91 lakh shares reserved for them or 0.13 times their quota. Retail investors bid for 0.82 times their quota or 70.46 lakh shares of the total 86.14 lakh shares reserved for them.
The IPO is a pure offer for sale (OFS) of 2.46 crore equity shares by Actis Components and System Investments and Anurag Jain, Managing Director of the company. Through the issue, Actis Components and System Investments will be exiting by selling 1.92 crore shares and Anurag Jain will be diluting his stake in the company by around 6.5% or 53 lakh shares. The offer shall constitute up to 17.50% of the fully diluted post-offer paid-up equity share capital of the company.
On Tuesday the company raised approximately `348.52 crore by allotting 73.83 lakh shares to anchor investors at a price of `472 apiece. Among the investors who were allotted shares in the pre IPO placement include Goldman Sachs, Nomura, HSBC, the government of Singapore, HDFC Mutual Fund and Reliance Capital Trustee, among others.
According to guidelines put out by Securities and Exchange Board of India (Sebi), 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds.
Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis. Endurance Technologies ended 2016 with revenues of `5,274.5 crore, up 6.5% compared to `4,949.4 crore in 2015.
Total expenses grew by 5.9% at `4,860.9 crore from previous year’s `4,590 crore. Net profit during the same period was up 15.38% at `291 crore from previous year’s `252 crore.