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Everstone-backed SJS Enterprises gets approval for IPO

By Vinu Lal

09:04, 12 October 2021

VW logo on steering wheel
VW logo on a steering wheel – Photo: Shutterstock

Indian automotive components maker SJS Enterprises has received the local market regulator’s approval to raise up to INR8bn ($106m) through an initial stake sale of shares to the public.

The company received final observation and approval on 5 October, the Securities and Exchange Board of India’s (SEBI) processing status on 11 October showed. A final observation letter from the market regulator is mandatory to launch an IPO, as per local rules.

Investor cashes out

SJS Enterprises, which is based in the southern city of Bengaluru, had filed a Draft Red Herring Prospectus (DRHP, or early papers) for the Initial Public Offering (IPO) in July 2021. 

The IPO is entirely an offer for sale (OFS) up to INR6.88bn by Singapore-based Evergraph Holdings, an investor in the company, which is owned by private equity firm Everstone Capital Partners. The company’s managing director KA Joseph would also offload up to INR1.2bn through the OFS, the DRHP showed.

SJS Enterprises designs, develops and manufactures products such as 2D decals and body graphics, dials, aluminium badges, wheel covers, nameplates and radiator grilles, bumper parts, door handles and instrument panel housings. Its clients include automotive manufacturers such as Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto and Royal Enfield.

AUD/USD

0.65 Price
-0.690% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 21:00 (UTC)
Spread 0.00006

EUR/USD

1.08 Price
-0.460% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0002%
Overnight fee time 21:00 (UTC)
Spread 0.00006

USD/JPY

151.45 Price
+0.080% 1D Chg, %
Long position overnight fee 0.0113%
Short position overnight fee -0.0195%
Overnight fee time 21:00 (UTC)
Spread 0.010

AUD/USD_zero

0.65 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 21:00 (UTC)
Spread 0.00006

The company also sells its products to auto component suppliers, consumer durable and appliance companies and medical device manufacturers.

Financial results

For the financial year ended 31 March 2021, SJS Enterprises posted a 15.7% rise in net profit at INR477.7m, up from the INR412.9m recorded during the same period of the previous financial year.

During the year under review, SJS Enterprises’ revenue from operations rose 16.40% to INR2.52bn from INR2.17bn recorded in the previous financial year.

Issue managers

Axis Capital, Edelweiss Financial Services and IIFL Securities are the managers for the issue.

Read more: Indian markets to face the heat over global energy crisis

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