Actis-backed Endurance Tech eyes $1 bn valuation in IPO

Auto components maker Endurance Technologies Ltd is seeking a valuation of as much as Rs 6,640 crore ($1 billion) through an initial public offering early next month.

The Aurangabad-based company has set a price band of Rs 467 to Rs 472 apiece for the IPO that begins on 5 October and closes two days later.

The issue is an offer for sale of 24.6 million shares by its five-year-old private equity investor Actis and promoter Anurag Jain. Actis is selling 19.29 million shares while Jain is selling 5.3 million shares. The company isn’t issuing any fresh shares. The issue will constitute up to 17.5% of the company’s post-offer capital.

This is Endurance’s second attempt to go public. The firm had earlier filed its draft red herring prospectus with the capital markets regulator Securities and Exchange Board of India in September 2011 but withdrew it in November 2011. It filed for an IPO again in July this year.

This is the second portfolio firm of Actis looking to go public. Earlier, AGS Transact had received approval for its IPO but did not go ahead with the planned issue.

Endurance is among around two dozen firms that are in the queue to go public. Of these, three-fourths have a PE firm as a shareholder and in many cases the investor is looking to partly or fully exit the respective private firms.

The auto parts maker was founded in 1999 as Endurance Suspension Systems (India) Pvt. Ltd. It went through a group consolidation and changed its name in 2010. It claims to be the largest two-wheeler and three-wheeler automotive component manufacturer in India in terms of aggregate revenue for FY15 in its selected product segments.

The company’s net sales grew 6.6% to Rs 5,240.6 crore for the year through March 2016 from Rs 4,916.9 crore the year before. Net profit rose 15% to Rs 291.2 crore.

Axis Capital and Citigroup are managing the issue.

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