Bids for the initial public offering (IPO) of decorative aesthetics supplier SJS Enterprises will open in the coming week. Along with this, two more IPOs- Policybazaar and Sigachi Industries will also open for subscription.
Some important things to know before subscribing to SJS Enterprises IPO:
– IPO date
Offer will open on 1st November and close on 3rd November.
– price band
The price band for the offer has been fixed at Rs 531 to Rs 542 per equity share.
– offer details
It is purely an issue of Offer for Sales (OFS) by the promoters. Evergraph Holdings PTI Limited will sell shares worth Rs 710 crore and KA Joseph will sell shares worth Rs 90 crore through OFS. Out of the total issue size of Rs 800 crore, the company has already raised Rs 240 crore from anchor investors as on October 29.
This is purely an offer for sale, so the company will not get any money from the IPO. All the money will go to the promoters. Through the offer, the company will take the benefits of listing the equity shares on the stock exchanges.
– Lot Size and Reserved Portion for Investors
The minimum bid lot size is 27 equity shares followed by multiples of 27 equity shares. Retail investors can subscribe for shares (one lot) of Rs 14,634 and the maximum investment can be Rs 1,90,242 (13 lots), as they are allowed to invest up to Rs 2 lakh in the IPO.
Half of the offer is reserved for Qualified Institutional Buyers (QIBs), 15 percent for non-institutional investors and the remaining 35 percent for retail investors.
– Company Profile
SJS Enterprises is one of the leading players in the Indian Decorative Aesthetics Industry in terms of Revenue in FY 2015 and FY 21 with a wide range of Aesthetics products in India for a wide range of customers primarily in the Automotive and Consumer Appliance Industry. presents.
The company supplied over 115 million parts with over 6,000 SKUs (Stock-Keeping Units) in FY 2011 to approximately 170 customers in approximately 90 cities in 20 countries.
IPO of 6 companies including Sigachi, SJS Enterprises is coming, know what is going on in the gray market.
It supplies aesthetics products to a wide range of industries including two-wheelers, passenger vehicles, consumer appliances, commercial vehicles, medical devices, agricultural equipment and sanitary ware.
Its customers are Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Ashok Leyland, Honda Motorcycle, Bajaj Auto, Royal Enfield, TVS Motor, Marelli, Vistian, Brembo, Mindarica, Whirlpool, Panasonic, Samsung, Eureka Forbes, Godrej, Liebherr, Sensa Core, and Geberit.
– Financials
SJS Enterprises reported a profit of Rs 47.76 crore for the year ended FY 2011, an increase from Rs 412.85 crore in FY 2010 and revenue increased from Rs 216.17 crore to Rs 251.61 crore in the same period. For the quarter ended June 2021, the company had a profit of Rs 9.5 crore on revenue of Rs 74.3 crore.
– Allotment, listing date and GMP
The company will finalize the IPO share allotment on November 10 and by November 11, investors who are not allotted shares will be refunded their money. Equity shares to eligible investors will be credited to their demat account by November 12. The company will debut on BSE and NSE on November 15.
Data from IPO Watch showed that the shares of SJS Enterprises were available in the gray market at Rs 567, a premium of Rs 25 or 4.6 per cent over the upper price band of Rs 542 per share. Axis Capital, Edelweiss Financial Services and IIFL Securities are the book running lead managers of the issue.
risks and concerns
Marwari Financial Services pointed out certain risks and concerns that the company operates in a very competitive industry and increased competition could result in lower revenues, lower profit margins or loss of market share. The Company may be unable to successfully integrate and manage Exotech or other strategic alliances or acquisitions in the future, posing increased business and financial risks to them.
Choice Broking also highlighted certain risks, which include continued slowdown in the global auto sector, revenue risk, raw material cost pressures and business seasonality that may follow the company’s business.
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