S.J.S. Enterprises Limited’s initial public offering of its equity shares to open on November 01, 2021
Price Band of ₹ 531 – ₹ 542 per equity share bearing face value of ₹ 10 each (“Equity Shares”).
Bid/Offer Opening Date – Monday, November 01, 2021 and Bid/Offer Closing Date – Wednesday, November 03, 2021.
Minimum Bid Lot is 27 Equity Shares and in multiples of 27 Equity Shares thereafter.
The Floor Price is 53.10 times the face value of the Equity Shares and the Cap Price is 54.20 times the face value of the Equity Shares.
Risk to Investors: The three Book Running Lead Manager(s) (the “BRLM(s)”) associated with the Offer have handled 45 public issues in the past three years, out of which 18 issues closed below the issue price on listing date. • Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 15.12%. • Average Cost of acquisition of Equity Shares for the Promoters (which includes the Selling Shareholders), namely Evergraph Holdings Pte. Ltd and K.A. Joseph is ₹88.15 and ₹9.95, respectively and the Offer Price at the upper end of the Price Band is ₹542 per Equity Share.
Chennai, October 27, 2021: S.J.S. Enterprises Limited (“Company”) is one of the leading players in the Indian decorative aesthetics industry in terms of revenue in Fiscal 2020 and as at March 31, 2021 (source: report issued in June 2021, titled “Assessment of Select Aesthetic Components” that has been prepared by CRISIL Research, a division of CRISIL Limited (“CRISIL Report”)).
The Company is proposing to open the initial public offering of its Equity Shares (the “Offer”) on Monday, November 01, 2021 and close it on Wednesday, November 03, 2021. The price band for the Offer has been determined at ₹531 – ₹ 542 per Equity Share.
The Offer is entirely an offer for sale of equity shares aggregating up to ₹ 7,100.00 million by Evergraph Holdings Pte. Ltd. and equity shares aggregating up to ₹ 900.00 million by K.A. Joseph (the “Selling Shareholders”).
The Company and the Selling Shareholders have, in consultation with the BRLMs to the Offer, considered participation by Anchor Investors in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”), whose participation shall be on Friday, October 29, 2021, i.e., one Working Day prior to the Bid/Offer Opening Date. The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers, , not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders, subject to valid Bids being received at or above the Offer Price.
The Company is one of the leading decorative aesthetics suppliers with the widest product coverage across decorative aesthetics pertaining to major vehicle segments such as two-wheelers, passenger vehicles and consumer durables (source: CRISIL Report). In addition, it also manufactures a wide range of aesthetics products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary ware industries (source: CRISIL Report). The Company has supplied over 115 million parts with more than 6,000 stock keeping units in Fiscal 2021 to around 170 customers in approximately 90 cities across 20 countries.
The company designs, develops and manufactures aesthetic products i.e., decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, in-mold label or in-mold decorations, lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts.
The Company’s key customer base includes, well known automotive original equipment manufacturers such as Suzuki Motorcycle India Private Limited, Mahindra & Mahindra Limited, John Deere India Private Limited, Skoda Auto Volkswagen India Private Limited, Honda Motorcycle and Scooter India Private Limited, Bajaj Auto Limited, Royal Enfield (a unit of Eicher Motors Limited); Tier-1 automotive component suppliers such as Marelli UM Electronic Systems Private Limited, Visteon (subsidiaries and group companies of Visteon Corporation), Brembo S.P.A., and Mindarika Private Limited; well-known consumer durables/appliances manufacturers such as Whirlpool (certain entities controlled by Whirlpool Corporation located outside India), Panasonic India Private Limited, Samsung India Electronics Private Limited, Eureka Forbes Limited, Godrej & Boyce Manufacturing Company Limited, and Liebherr India Manufacturing Private Limited; medical device manufacturers such as Sensa Core Medical Instrumentation Private Limited as well as sanitary ware manufacturers such as Geberit India Manufacturing Private Limited.
Axis Capital Limited, Edelweiss Financial Services Limited, and IIFL Securities Limited are the BRLMs.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated October 22, 2021 (“RHP”) filed with the Registrar of Companies, Karnataka at Bangalore (“RoC”).
Disclaimers: S.J.S. ENTERPRISES LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its equity shares bearing face value of Rs. 10 each (“Equity Shares”) and has filed the RHP with the RoC and thereafter with SEBI and the Stock Exchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the BRLMs, i.e., Axis Capital Limited at www.axiscapital.co.in, Edelweiss Financial Services Limited at www.edelweissfin.com and IIFL Securities Limited at www.iiflcap.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 25 of the RHP. Potential investors should not rely on the Draft Red Herring Prospectus dated July 27, 2021, filed on July 28, 2021, with SEBI for making any investment decision.
DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”): SEBI only gives its observations on the offer documents, and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 308-309 of the RHP for the full text of the disclaimer clause of SEBI
DISCLAIMER CLAUSE OF NSE (Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 310-3011 of the RHP for the full text of the disclaimer clause of NSE
DISCLAIMER CLAUSE OF BSE It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 310 of the RHP for the full text of the disclaimer clause of the BSE
For further details in relation to the Company, the BRLMs, Compliance Officer of the Company, availability of application forms and RHP, please refer to statutory advertisement dated October 26, 2021 (published on October 27, 2021).
