Endurance Technologies Limited – Initial Public Offer to open on Wednesday, October 5, 2016 and to close on Friday, October 7, 2016

endurance-technologies-limited

Price Band fixed from Rs. 467 to Rs. 472 per equity share

Mumbai September 28, 2016: Endurance Technologies Limited (the “Company”) proposes to open on Wednesday, October 5, 2016, an initial public offering of up to 24,613,024 equity shares of face value of Rs. 10 each (the “Equity Shares”) at a price band from Rs. 467 to Rs. 472 per Equity Share consisting of an Offer for Sale of up to 19,295,968 Equity Shares by Actis Components and System Investments Limited (“Actis”) and up to 5,317,056 Equity Shares by Mr. Anurang Jain (“Promoter Selling Shareholder”) (collectively, the “Selling Shareholders”) (the “Offer For Sale” or the “Offer”). The Offer shall constitute up to 17.50% of the fully diluted post-Offer paid-up equity share capital of the Company.  The Offer will close on Friday, October 7, 2016.  Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.

The Book Running Lead Managers (“BRLMs”) to the Offer are Axis Capital Limited and Citigroup Global Markets India Private Limited.

The Company and Selling Shareholders, in consultation with the BRLMs, may consider participation by Anchor Investors, in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“ICDR Regulations”). The Anchor Investor Bidding Date shall be one Working Day prior to the offer Opening Date.

The Equity Shares offered through the Offer are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).

The Offer is being made through the book building process, in reliance on Regulation 26(1) of the ICDR Regulations wherein not more than 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”); Provided that the Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors) and Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Issue shall be available for allocation to Retail Individual Investors, in accordance with the ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily utilize the ASBA process providing details of their respective bank accounts, which will be blocked by the SCSBs to participate in the Offer.

The Company is the largest two-wheeler and three-wheeler automotive component manufacturer in India in terms of aggregate revenue for FY2015 from its selected product segments (Source: CRISIL Research). It also has operations in Europe with highly-automated manufacturing facilities in Italy and Germany. Tier one companies are companies that directly supply to original equipment manufacturers (“OEMs”), and the Company is a tier one supplier to OEMs for most of its products. According to the Aluminium Casters’ Association of India, the Company is the number one aluminium die-casting company in India in terms of actual output and installed capacity in FY2016. The Company is a complete solutions provider, providing end-to-end services by engaging its customers from conception to end-user delivery. Its development process includes design, development, validation, testing, manufacturing, delivery and aftermarket sale service for a wide range of technology-intensive auto component products leading to better customer satisfaction and diversification of its customer base. The Company is an innovation-driven company with strong focus on research and development (“R&D“), which allows it to develop new products suited to customer requirements. In India, the Company manufactures a diverse range of technology-intensive automotive components for the two-wheeler and three-wheeler segments. The Company also manufactures specified components for four-wheeler passenger vehicles, light commercial vehicles and heavy commercial vehicles. The Company’s customers in India and Europe include leading domestic and global OEMs. In FY 2016, its largest customers in India were Bajaj, Royal Enfield, Honda Motorcycle and Yamaha. It has a long-standing relationship with Bajaj, which is its largest customer. In addition to these customers, the Company also supplies to a variety of other OEMs in India, such as Hero, Mahindra, Tata, Suzuki, H-D Motor Company India Pvt. Ltd, Fiat India and a leading Indian motorcycle OEM. In Europe, the Company’s largest customer is FCA Italy S.p.A., and it supplies components used in the engines of a variety of FCA Italy S.p.A.’s brands, such as Jeep, Chrysler, Alfa Romeo, Abarth, Fiat and Lancia (Jeep, Chrysler, Alfa Romeo, Abarth, Fiat and Lancia are registered trademarks owned by the FCA Group). The Company also supplies to Daimler and other reputable four-wheeler OEMs operating from Europe. The Company has 25 plants across India, Italy and Germany.

Disclaimers:

Endurance Technologies Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the red herring prospectus (“RHP”) with the RoC, on September 26, 2016. The RHP is available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and at the website of the Lead Managers at www.axiscapital.co.in and www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, respectively. Any potential Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” on page 17 of the RHP. Potential investors should not rely on the Draft Red Herring Prospectus filed with SEBI for making any investment decision.

The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold or delivered within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the United States securities laws. Accordingly, any offer and sale of securities of the Company and or/any of its subsidiaries will be undertaken (i) in the United States only to qualified institutional buyers (as defined in Rule 144A under the Securities Act (“Rule 144A”)) in reliance on Rule 144A or Section 4(a)(2) of the Securities Act, and (ii) outside the United States only in offshore transactions in reliance on Regulation S under the Securities Act.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.

CRISIL Research, a division of CRISIL Limited (“CRISIL”), has taken due care and caution in preparing the Report based on the information obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. The Report is not a recommendation to invest / disinvest in any company covered in the Report. CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters / distributors of the Report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and Infrastructure Solutions Limited (“CRIS”), which may, in their regular operations, obtain information of a confidential nature. No third party whose information is referenced in this Report under credit to it, assumes any liability towards the user with respect to its information. The views expressed in the Report are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS. No part of the Report shall be quoted out of context or in the manner that it distorts its context or meaning.

Anurang Jain ,Managing Director, Endurance Technologies Limited addressing the Press Meet
Anurang Jain ,Managing Director, Endurance Technologies Limited addressing the Press Meet
Gaurang Mehta, Axis Capital Limited, Satrajit Ray, Director And Group CFO, Endurance Technologies Limited, Anurang Jain ,Managing Director, Endurance Technologies Limited, Ramesh Gehaney, Director And COO, Endurance Technologies Limited ,Rahul Saraf, Citigroup Global Markets India Private Limited
Gaurang Mehta, Axis Capital Limited, Satrajit Ray, Director And Group CFO, Endurance Technologies Limited, Anurang Jain ,Managing Director, Endurance Technologies Limited, Ramesh Gehaney, Director And COO, Endurance Technologies Limited ,Rahul Saraf, Citigroup Global Markets India Private Limited