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SJS Enterprises receives green light for IPO

Indian auto component maker SJS Enterprises has received approval from the local market regulator to raise up to INR 8 billion (US $ 106 million) through an initial sale of shares to the public.

The company received final observation and approval on October 5th, as indicated by the processing status of the Securities and Exchange Board of India (SEBI) on October 11th. A final observation letter from the market regulator is required for initiating an IPO in accordance with local regulations.

Investors cashed out

SJS Enterprises, based in the southern city of Bengaluru, submitted a Draft Red Herring Prospectus (DRHP or Early Papers) for the initial public offering (IPO) in July 2021.

The IPO is entirely an OFS offer of up to INR 6.88 billion from Singapore-based Evergraph Holdings, an investor in the company owned by private equity firm Everstone Capital Partners. The company’s managing director, KA Joseph, would also offload up to INR 1.2 billion via the OFS, the DRHP showed.

SJS Enterprises designs, develops and manufactures products such as 2D stickers and body graphics, dials, aluminum badges, hubcaps, nameplates and grills, bumper parts, door handles and instrument panel housings. His clients include automobile manufacturers such as Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto and Royal Enfield.

The company also sells its products to automotive suppliers, manufacturers of consumer goods and household appliances, and manufacturers of medical devices.

Financial results

For the fiscal year ended March 31, 2021, SJS Enterprises posted a 15.7% increase in net income to INR 477.7 million compared to INR 412.9 million for the same period in the previous fiscal year.

In the year under review, SJS Enterprises’ operating sales increased by 16.40% to INR 2.52 billion from INR 2.17 billion in the previous year.

Issue manager

Axis Capital, Edelweiss Financial Services and IIFL Securities are the managers for the issue.

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