Delhi-based auto components maker Sandhar Technologies Ltd has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
Here's a snapshot of the IPO
* The IPO comprises a fresh issue of shares to raise up to Rs 300 crore. It also includes an offer for sale of up to 5.11 million equity shares or over half the stake held by existing PE investor GTI Capital.
* Bankers: ICICI Securities, IDFC Securities, IIFL and Jefferies.
Use of proceeds
* Of the total proceeds of the fresh issue, around Rs 51.7 crore would be used for setting up a new factory at Hosur, Tamil Nadu; about Rs 180 crore for repayment/pre-payment of debt; and the remaining for general corporate purposes.
Company
* Sandhar Technologies was incorporated in 1987 by first-generation entrepreneur Jayant Davar, co-chairman and managing director of the company, who has close to 30 years of experience in OEM component manufacturing.
* The company is a OEM component supplier, focused on safety and security systems in vehicles, with a pan-India presence and a growing international footprint. It has 29 factories across eight states in India, besides four facilities in Spain, Poland and Mexico.
* It had commenced operations as a supplier to Hero MotoCorp (formerly Hero Honda Motors Ltd) for sheet metal components.
* At present, it makes around 15 categories of products with several varieties that cater to different industry segments including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and tractors.
* The product portfolio includes safety and security systems such as lock assemblies, mirror assemblies, cabins, aluminium spools, spindles and hubs. It also includes other categories such as wheel assemblies, sheet metal components, dies and moulds, other aluminium components, tools, crane and tractor parts, plastic parts such as door handles, panels for televisions and cabinets for air coolers and handle bar assemblies.
* As of August 31, 2015, the company had a total work force of 6,241 comprising 2,082 employees and 4,159 people on a contract basis.
* Some of its clients are Royal Enfield, Honda Cars, Tata Motors, Ashok Leyland, Caterpillar and Bosch.
Financials
* For the financial year 2015, 2014 and 2013, the firm clocked net revenue from operations of Rs 1,487.3 crore, Rs 1,268.8 crore and Rs 1,162 crore, respectively, growing at a CAGR of 8.57 per cent. Its EBITDA for the fiscal 2015, 2014 and 2013 was Rs 144 crore, Rs 120 crore and Rs 95.4 crore, respectively, growing at a CAGR of 14.82 per cent.
Investors
* GTI Capital had invested in Sandhar in 2012 by acquiring the stake held by Actis. It later invested more in a rights issue and currently owns a 17.47 per cent stake in Sandhar and is selling more than half of it.
