SJS Enterprises Limited IPO: Opens tomorrow; key details that investors must know before investing

SJS Enterprises Limited, a decorative aesthetics product company, will launch its initial public offering (IPO) tomorrow, i.e., on Monday, November 1, 2021. The company has fixed the price band for the offer at Rs 531-542 per share as it seeks to raise around Rs 800 crore from the issue. The issue will close on Wednesday, November 3, 2021.

The Rs 800 crore IPO is entirely an offer for the sale of shares worth Rs 710 crore by Evergraph Holdings Pte Ltd and shares to the tune of Rs 90 crore by KA Joseph. At present, Evergraph Holdings and KA Joseph owns 77.86 per cent and 20.74 per cent stake in the company, respectively.

It must be noted that the issue comprises of only offer for sale (OFS) portion. Thus, the company will not receive any proceeds from the issue.

The retail investors can buy a minimum of one lot of 27 equity shares for an amount of Rs 14,634, at an upper price band, and a maximum of 13 lots worth Rs 1,90,242. Of the total issue, 50 per cent of the issue size is reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Axis Capital Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the book running lead managers for the issue. Axis Bank Limited is the sponsor bank for the purpose while Link Intime India Private Limited is the registrar for it.

Issue Timeline

• Bidding period: November 1-3, 2021
• Allotment: November 10, 2021.
• Refund Initiation: November 11, 2021.
• Share Crediting: November 12, 2021.
• Listing: November 15, 2021.

Besides, the company has raised Rs 240 crore from anchor investors ahead of its initial share sale. The company has decided to allocate a total of 44,28,043 equity shares to 18 anchor investors at Rs 542 apiece, aggregating the transaction size to Rs 240 crore, according to a circular uploaded on the BSE website. Goldman Sachs, Nomura Singapore, Citigroup Global Markets Mauritius, Societe Generale, Axis Mutual Fund and Aditya Birla Sun Life Mutual Fund among others have been allocated shares.

SJS Enterprises Limited is one of the leading players in the Indian decorative aesthetics industry in terms of revenue in Fiscal 2020 and as of March 31, 2021, offered the widest range of aesthetics products in India, according to the CRISIL Report. It is a "design-to-delivery" aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio. It caters to the requirements of the two-wheeler, passenger vehicle, commercial vehicle, consumer appliance, medical devices, farm equipment and sanitary ware industries. We differentiate ourselves on the basis of the wide range of our product portfolio, quality of our product offerings, our product design and development capabilities and the strength of our relationships with customers located across various industries globally.

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, IMLs/IMDs, lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts.

The company has its manufacturing facilities at Bengaluru and Pune and as of March 31, 2021, the annual production capacity of the Bengaluru and Pune facilities was 208.61 million and 29.50 million products, respectively. In FY 2021, the company and its subsidiary produced 91.94 million and 15.60 million products, respectively. The company has a global presence and supplied over 115 million parts to around 170 customers across 20 countries in FY 2021.