Auto-components maker Endurance Technologies Ltd made a dream debut on the stock exchanges on Wednesday with its shares listing at a premium of 21% to its issue price and then extending the gains to end 37% higher.
Shares of the Aurangabad, Maharashtra-based company started trading at Rs 570 apiece on the BSE compared with the initial public offering price of Rs 472. The shares touched a high of Rs 655 before closing at Rs 647.70, giving the company a market valuation of Rs 9,111 crore ($1.37 billion). The benchmark Sensex fell 0.2%.
Endurance Tech joins companies such as RBL Bank, Thyrocare Technologies, Quess Corp and Advanced Enzyme that have made spectacular debuts on the stock markets this year. RBL Bank soared 33% when it started trading in August, diagnostics firm Thyrocare jumped 48% on its listing day in May while Quess Corp climbed 57% and Advanced Enzyme soared 35% on their debut.
The auto-parts maker’s robust debut comes after investors rushed to subscribe to the company's IPO, which was covered 43 times earlier this month.
The IPO recorded a slow start but easily sailed through on the last day of the offering thanks to high net-worth individuals and corporate investors bidding for 127 times their portion of the issue and institutional investors bidding for 53 times their quota.
Earlier, a day ahead of the public issue, Singapore’s sovereign wealth fund GIC joined others to come as an anchor investor in Endurance.
GIC, which has a large public equities portfolio and has participated in several IPOs as an anchor investor, brought in Rs 25 crore ($3.7 million) as part of a larger share sale. Combined with several portfolio and mutual fund investors, Endurance raised Rs 348.5 crore.
The IPO comprised an offer for sale where its private equity backer Actis sold all its 19.29 million shares while promoter Anurag Jain sold 5.3 million shares. The company didn't issue any fresh shares.
This was Endurance’s second attempt to go public. The firm had earlier filed its draft red herring prospectus with the capital markets regulator Securities and Exchange Board of India in September 2011 but withdrew it in November 2011. It filed for an IPO again in July this year.
Endurance is the first portfolio firm of Actis to go public. Earlier, another Actis-backed firm, AGS Transact, had received approval for its IPO but did not go ahead with the planned issue.
The auto-parts maker was founded in 1999 as Endurance Suspension Systems (India) Pvt. Ltd. It went through a group consolidation and changed its name in 2010. It claims to be the largest two-wheeler and three-wheeler automotive component manufacturer in India in terms of aggregate revenue for FY15 in its selected product segments.
The company’s net sales grew 6.6% to Rs 5,240.6 crore for the year through March 2016 from Rs 4,916.9 crore the year before. Net profit rose 15% to Rs 291.2 crore.
Axis Capital and Citigroup managed the issue.
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