Sandhar Technology Ltd initial public offering (IPO) opens today. It expects to raise close to Rs 512 crore to repay debt. Its equity shares are proposed to be listed on BSE and NSE. ICICI Securities and Axis Bank are the book running lead managers.
The New-Delhi based auto component maker is offering 1.5 crore shares at Rs 327-332 apiece. It will be a mix of fresh issue of shares and offers for sale. GTI Capital Beta will sell its remaining stake to make four-fold returns.
Fresh Issue: Rs 300 crore (Rs 225 crore will be used to pay debt and rest will be utilised for corporate purposes)
Sale of stake by existing investors: Rs 212.5 crore
Issue begins today, March 19 and closes on March 21.
Sandhar Technologies Ltd has 21 categories for the products it makes. These include rear view mirrors for commercial vehicles, two-wheeler locking system, aluminum components and wheel assembly.
It has 31 facilities in India in 8 states, 2 in Spain and one in Mexico. It is also commissioning 5 other plants in India.
It has 79 original equipment makers (OEM) as its clients. These are but global and Indian, they include Hero Motorcorp Ltd, TVS Motor Company Ltd. and Eicher Motors Ltd.
12% of its revenue comes from Europe.
Its net worth after IPO will be Rs 628 crore, making its book value Rs 104 per share. In four years through March 2017, its revenue grew at an annualised rate of 9% and its net profit grew at 6%.
Its revenue and net profit for the first half ended September was Rs 989 crore and Rs 34 crore respectively.
Sandhar Technology Ltd has a debt of close to Rs 354 crore which will fall after repayment from the proceeds of the IPO. It has invested Rs 600 crore into its business in the last 5 years.