SJS Enterprise IPO: Here’s all you need to know

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SJS Enterprise a leading player in the Indian decorative aesthetics products industry, is all set to raise Rs 800 crore through its initial public offering (IPO). Here are nine details about the IPO that you should know is the price band, lot size and other details for the issue

Open and close date: The offer will open for subscription on November 01 and the bidding will close on November 03. The anchor book, if any, will open for a day before the issue, i.e. October 31.

Price band: The price band for the ingredient manufacturer has been fixed at Rs 531 – 542 per share having a face value of Rs 10 per share.

Lot size: Investors can bid for a minimum of 27 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,634 at the higher end of the price band. A retail investor can at max apply for 13 lots or 351 shares for Rs 1,90,242.

Issue size: The Rs 800-crore public offer is entirely an OFS (offer for sale) of Rs 710 crore by Evergraph Holdings Pte Ltd and Rs 90 crore by KA Joseph.

Objective of issue: None of the proceeds will be reflected on company’s books.

What’s in it for retail investors? Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: SJS is one of the leading players in the Indian decorative aesthetics industry. The company is a ‘design-to-delivery’ aesthetics solutions provider with a diverse product offering for the automotive and consumer appliance industries. The company’s product offerings include – decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminium badges, in-mould labels, or decoration parts, lens mask assembly, and chrome-plated printed, and painted injection moulded plastic parts. The company has two manufacturing units located in Bengaluru & Pune.

Suzuki Motorcycle India, Mahindra & Mahindra, John Deere India, Skoda Auto Volkswagen India, Honda Motorcycle and Scooter India, Bajaj Auto, and Royal Enfield are some of its marquee clients. That apart it also provides products to consumer durables/appliances manufacturers such as Whirlpool, Panasonic India, Samsung India Electronics, Eureka Forbes, Godrej & Boyce Manufacturing Company, and Liebherr India Manufacturing.

The company’s net profit jumped to Rs 41.28 crore for the year ended FY21 compared to Rs 37.60 crore in FY19. Whereas its total revenues slipped to Rs 221.27 crore versus Rs 240.76 crore during the same period. For the quarter ended June 2021, the company posted a profit of Rs 9.49 crore on a revenue of Rs 75.29 crore.

Book running lead managers and registrar to the IPO: The book running lead managers to the issue are Axis Capital, Edelweiss Financial Services and IIFL Securities are the book running lead managers to the issue. The registrar to the issue is Link Intime.

Issue timeline: The issue is likely to finalise the basis of allotment by November 10, and the initialisation of refunds will take place by November 11. While the credit of equity shares to depository accounts of the allottee will be done on November 12. The company is expected to make its stock market debut on November 15, 2021.