Endurance Technologies IPO subscribed 43.7 times on final day

New Delhi: The initial public offering of Endurance Technologies Ltd, an Aurangabad-based automobile parts maker, was subscribed 43.7 times on the final day of the issue.

The issue received bids for 752.6 million equity shares as against 17.2 million shares on offer. The quota reserved for qualified institutional buyers was covered 53.43 times, while non-institutional investors’ portion was subscribed 127 times. Retail investors, whose investments cannot exceed Rs.2 lakh in an IPO, bid for about 2.5 times their quota.

On Tuesday, Endurance Technologies raised ₹ 348.5 crore by allocating shares to anchor investors, at ₹ 472, the upper end of the IPO price band of ₹ 67-472. The anchor investors included Government of Singapore, Monetary Authority of Singapore, Nomura, Goldman Sachs and Amundi, ICICI Prudential, Reliance Capital, UTI Mutual Fund, Axis Mutual Fund and Birla Sun Life.

The anchor book is the portion of the IPO which bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

The Endurance IPO is a pure offer for sale by existing investor Actis and promoter Anurag Jain. While Actis is selling 19.29 million shares while Jain is selling 5.3 million shares. The issue will constitute up to 17.5% of the company’s post-offer capital.

Actis bought the Endurance stake in 2011 for $70 million (approximately Rs.373 crore) from Standard Chartered Private Equity.

Axis Capital and Citigroup Global Markets are the book-running lead managers to the issue.

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.

Some of its customers include Bajaj Auto Ltd, Honda Motorcycle & Scooter India Ltd, Royal Enfield, India Yamaha Motor, Hero Motorcorp, Mahindra & Mahindra and Tata Motors.

In 2015-16, the company’s net sales rose 6.6% to Rs5,240.6 crore from Rs4,916.9 crore a year ago. Net profit rose 15% to Rs291.2 crore.