Endurance Technologies OFS comprises The offer for sale by promoter
Anurag Jain and shall open for non-retail investors on March 6 and to retail investors on the net day. Endurance Technologies OFS entails to sell 63.63 lakh shares with an option to additionally sell 41.89 lakh shares (in case of oversubscription). The floor price is fixed at ₹1,100. The OFS is ato reduce promoters’ stake below 75% to meet SEBI’s minimum public shareholding norm .
About Endurance Technologies OFS
| Issue Period | 06-03-2019 and 07-03-2019 |
| Face Value | 10 |
| Floor Price | 1100 |
| Base Offer (shares) | 63,63,637 |
| Total with GreenShoe (shares) | 1,05,52,688 |
| Total in Rs. Cr. | 1,161 |
| Base offer Retail (Shrs) | 6,36,364 |
| Base offer Retal- Rs. Cr | 70 |
| Tot offer Retail (Shrs) | 1055269 |
| Tot offer Retail Rs. Cr | 116 |
| Allocation Methodology | Price Priority |
OFS Allocation Methodology
Retail investor shall mean an individual investor who places bids for Offer Shares of total value of not more than Rs. 2,00,000/- (Rupees Two Lakhs) aggregated across Stock Exchanges.
A Retail Investor may bid at any price above the Floor Price and/or bid at “Cut-Off Price”. “Cut-Off Price” means the lowest price, as shall be determined, at which the Offer Shares are sold in the Non-Retail Category, based on all valid bids received on T Day.
Allocation to retail Investors shall be made based on the Cut-Off Price. Upon determining Cut-Off Price for the Retail Investors, the Other Shares reserved for such category shall be allocated to eligible bids of Retail Investors on price priority method at multiple clearing prices / Cut-Off’ price in accordance with SEBI OFS Circulars. In the case of retail potion being oversubscribed, the aggregate number of Offer Shares bid for at a particular clearing price / Cut-Off Price, as the case may be, is more than available quantity then the allocation for such bids will be done on a proportionate basis at such clearing price (at or above the Cut-Offer Price) / the Cut-Off Price, as the case may be.
Individual investors shall have the option to bid in the Retail Category and the Non-Retail Category. However, if the cumulative bid value by such an individual investor across both categories exceeds Rs. 2,00,000/- (Rupees Two Lakhs), the bids in the Retail Category will become ineligible. Further, if the cumulative bid value by an individual investor in the Retail Category across the Stock Exchanges exceeds Rs. 2,00,000/- (Rupees Two Lakh only), such bids shall be rejected.
Settlement shall take place on a trade for trade basis. For bids received from Non-Retail Category on T Day, non-institutional investors and institutional investors who place orders with 100% of the order value deposited upfront, settlement shall take place on a T+I Day. In the case of institutional investors who place bids without depositing 100% of the order value upfront, settlement shall be as per the existing rules for secondary market transactions (i.e., on T+2 Day). For the bids received on T+l Day, from the Retail Category and from the un-allotted non-Retail Investors who choose to carry forward their bid to T+l Day, the settlement shall take place on T+3 Day. In case of non-institutional investors and institutional investors bidding with 100% margin upfront who chose to carry forward their un-allotted bids to T+1 Day, the settlement shall take place<on_T+2_Day.
The allocation to the non-Retail Investors shall be at price equal to the Cut-off Price or higher as per the bids.
About Endurance Technologies
- Endurance Technologies is a leading automotive component manufacturers having a diverse range of technology intensive products .
- Endurance Technologies has operations in India and Europe (Italy and Germany).
- Endurance Technologies mainly caters to two and three wheeler OEMs and the products include aluminium castings suspensions transmission and braking systems.
- In Europe Endurance Technologies predominantly caters to four wheeler OEMs and mainly supplies aluminium casting products.
- The company has a total 24 plants of which 16 are in India 3 are in Germany and 5 plants are in Italy.
Axis Bank Share Price Chart & Financial Overview
| Market Cap in Rs. Cr | 18,674 |
| Revenue FY18 in cr | 6,538 |
| CMP in Rs. | 1,259 |
| Face Value | 10 |
| Price / Earning (PE) | 39.21 |
| Book Value | 161.33 |
| Price / BV | 7.80 |
| ROCE % | 23.06% |
| ROE % | 20.74% |
| Dividend Yield | 0.30% |
| Sales 3 yr CAGR | 9.96% |
Endurance Technologies OFS: Salient points and Assessment
- Endurance Tech reported Flat Financial performance for the quarter Dec-18.
- Endurance Technologies recently received LoI from HMSIfor supply of 2.76m front forks for all four plants of HMSI by 2021. This order is considered value accretive by management
- Endurance Technologies has been over the years reducing dependence on Bajaj Auto and presently share of Bajaj reduced to 35% of consolidated sales in 9MFY18 .
- Retail Investors can bid upto Rs 2 lacs
- Cut-off price will be determined based on the bids received on T Day
- Bidding in OFS opportunities like Endurance Technologies OFS is challenging for retail investors because of the need to may money upfront and change in bid price by large investors at the last moment. Hence chances of allotment many times is difficult.
- Endurance Technologies OFS floor price at Rs 1100 was at good discount to market price of Rs. 1263, but the prices in such case adjust quickly.
- Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.