1. Endurance Technologies’ IPO oversubscribed; Should you invest?

Endurance Technologies’ IPO oversubscribed; Should you invest?

Endurance Technologies IPO was subscribed by 36.37 times on the last day of the public offer till 3.45 pm.

By: | Updated: October 7, 2016 4:03 PM
BSE Sensex, NSE Nifty, endurance technologies ipo Endurance Technologies IPO was subscribed by 36.37 times on the last day of the public offer till 3.45 pm.

Endurance Technologies IPO was subscribed by 36.37 times on the last day of the public offer till 3.45 pm. The issue received bids for 62,65,76,340 shares against 1,72,29,118 shares offered by the company, according to the data available with NSE. The company is an auto component manufacturer engaged in design, development, validation, testing, manufacturing, delivery and aftermarket sale service for a wide range of technology-intensive auto component products.

Endurance Technologies has fixed a price band of Rs 467-472 per equity share for the offer which is scheduled to close on Friday (October 7). The issue is being managed by Axis Capital and Citigroup Global Markets India Pvt Ltd. Shares of the company are proposed to be listed on BSE and National Stock Exchange (NSE).

Brokerage firm YES Securities is positive on the ongoing public offer of Endurance Technologies. The brokerage house in a research report said, “At the price band of Rs 467-472 per share, the IPO is priced at a PE band of 22.6-22.8 times on its consolidated FY16 EPS. Valuations are comparable to that of peers Gabriel India and Rico Auto trading at an FY16 multiple of 22.9 and 29.6 times, respectively, but a tad expensive to Munjal Showa trading at an FY16 multiple of 13.6 x (based on 4th October 2016 closing price). We believe the valuations for the IPO are attractive and would recommend an ‘APPLY’ on the same.”

According to Motilal Oswal, the company’s return ratios and growth are higher than the average of all the peers, while valuations are at par. Thus the company is attractively poised.

Endurance Technologies derives around 70 per cent of its total revenues from India and balance from Europe (percentage as of FY16). In India, it manufactures a diverse range of technology-intensive automotive components for the 2-wheeler and 3-wheeler segments. It also manufactures specified components for passenger vehicles, light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). It has 18 manufacturing facilities in India, 2 in Germany and 5 in Italy.

Tags: IPO
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