Sandhar Technologies IPO.

Sandhar Technologies Limited IPO (Sandhar Technologies IPO) Detail

Company Promoters :

The Promoter of the Company is Mr. Jayant Davar. The Promoter directly holds 31,306,426 Equity Shares (inclusive of the 90,909 Equity Shares held by him in his capacity as sole proprietor of Sandhar Enterprises), representing 61.20% of the pre-Offer issued, subscribed, and paid-up capital of the Company.

Business Description : 

Sandhar Technologies is the leader in the two-wheeler locking systems market, and the commercial vehicle rear view market in India, and is one of the two largest companies catering to the commercial vehicle locking systems market, and the two-wheeler rear view market in India. It is also one of the two largest manufacturers of operator cabins in India, along with being the largest player in the excavator cabins market. Our business involves designing and manufacturing a diverse range of automotive components, parts and systems, driven by technology, process, people and governance.

The company manufacture its products from 29 manufacturing facilities across eight states in India, two manufacturing facilities in Spain, and one manufacturing facility in Mexico.

The company’s customer portfolio consists of 79 Indian and global OEMs across various segments including Ashok Leyland, Doosan Bobcat, Escorts, Hero, Honda Cars, Komatsu, Scania, TAFE, Tata Motors, TVS, UM Lohia, and Volvo etc. In the last 12 years, the Company has received investment by two private equity investors, namely Actis Group and GTI.

As of October 31, 2017, it had a total work force of 7,744 individuals comprising of 2,363 employees, and 5,381 individuals engaged on contractual basis.

Sandhar Technologies’ financial performance (in INR crore)

Objects of the Issue :

The Offer comprises of the Fresh Issue and the Offer for Sale.

1. Offer For Sale

The Company will not receive any proceeds from the Offer for Sale.

2. Fresh Issue

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards:

a. Repayment or prepayment in full, or in part of certain loans availed by the Company; and
b. General corporate purposes

Issue Details :

  • Issue Type: Book Built Issue IPO 
  • Issue Size: 
        ›  Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 300.00 Cr 
        ›  Offer for Sale of 8,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr 
  • Face Value: Rs 10 Per Equity Share
  • Total IPO size : INR561.6 – 565.6 crore
  • Retail Allocation : 35%

Valuation of Sandhar Technologies (Based on latest FY)

  • Earnings Per Share (EPS): INR7.66
  • Price/Earnings (P/E) ratio: 42.68 – 43.34
  • Return on Net Worth (RONW): 13.01%
  • Net Asset Value (NAV): INR58.91 per share
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