Endurance Technologies is the new kid in the IPO Block

Endurance Technologies, the Maharashtra-based auto component maker is all set to hit the capital market on 5^th October with 2.46 crore equity shares public issue. According to the latest update, the company has fixed a price band of Rs 467 to 472 for each share. The issue is an offer for sale of up to 1.92 crores shares and 53.17 lacs shares by selling stockholders Actis Components and Anurang Jain (managing director), respectively.

Therefore, the company is not about to get any money from the issue that will close on 7^th October. The offer will constitute up to 17.50 per cent of the fully diluted post-offer paid-up equity share capital of Endurance Technologies. The investors can bid for a minimum of quantity of 30 equity shares and thereafter in the multiples of 30 equity shares. Endurance Technologies manufactures a diverse range of technology-intensive automotive components for two-wheeler and three-wheeler segments. It is also known to manufacture specified components for four-wheeler passenger vehicles, light commercial vehicles as well as heavy commercial vehicles.

The products and services of the Company includes

• Raw as well as machined aluminium castings such as high pressure die castings, low pressure die castings and aluminium alloy wheels for the motorcycles.
• Manufacturing of suspension products like shock absorbers for scooters, motorcycles as well as 3 wheeler, front fork for motorcycles & scooters, hydraulic dampers for quadricycles.
• Manufacturing of Transmission products such as clutch assemblies, cork as well as paper based friction plates for motorcycles & three wheelers and Continuous Variable Transmission (CVT) assemblies for scooters.
• Brake systems such as hydraulic disc brake assemblies including calipers, master cylinder and rotary disc brake for motorcycles & scooters and hydraulic drum brake assemblies and tandem master cylinder for three wheelers.
• After-market services to cater to the replacement market.

Endurance Technologies largest customers in India includes Bajaj Auto, Royal Enfield, Honda Motorcycle & Scooter India along with India Yamaha Motor. The Company also supplies auto components giants like Hero Motorcorp, Mahindra & Mahindra, Tata Motors, HD Motor Company, Fiat India Automobiles. In the continent of Europe, its largest customer is FCA Italy SpA and group companies. The company holds 25 plants across India, Italy as well as Germany. In addition to these plants it is currently in the initial stages of planning an automotive proving ground (test track) in Aurangabad of Maharashtra, India, which it expects to be operational by the end of 2018.

At present the company has consolidated debt of Rs 712 crores and debt to equity ratio at 0.41. The equity shares are proposed to be enlisted on Bombay Stock Exchange and National Stock Exchange. The book running lead managers to the issue are Axis Capital along with Citigroup Global Markets India while Link Intime India is the registrar to the offer.