Sandhar Technologies Limited IPO

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Sandhar Technology is a customer-centric automotive OEM component supplier, primarily focused on safety and security systems in vehicles, with a pan India presence and a growing international footprint. The Company business involves design and manufacturing of diverse automotive components and systems. And the company is segmented agnostic and driven by technology, process, people, and governance.
The Company are the largest supplier of lock assemblies and mirror assemblies to two-wheeler OEMs in India and are one of the three largest manufacturers of cabins in India. (Source: “Indian Automobile & Auto Component Industry Report – Special Report (with focus on Locking Systems, Mirror Systems, Aluminum Die-Casting and Cabin Fabrication Industry)” dated August 2015 by ICRA Limited the “ICRA Research Report”). a longstanding relationship with our major customers has been one of the most significant factors contributing to our growth. Our customer portfolio consists of some of the leading Indian and global OEMs, such as those indicated in the table below:

Name of the Customer Segment
Hero Two wheelers
TVS
Royal Enfield
Honda Cars Passenger vehicles
Tata Motors Passenger vehicles and commercial vehicles
Ashok Leyland Commercial vehicles
Mahindra Commercial vehicles and Off-highway vehicles
JCB Off-highway vehicles
Caterpillar
Bosch Tier-1 Auto Components
Sandhar Technologies Limited IPO Stock Quote & Charts

322.50

-3.12%

  • Open: 333.95
  • High - Low: 335.60 - 308.00
  • Previous Close: 332.90
  • Total Traded Volume: 45386
  • Updated On: 24-Sep-2018

Objects of the Sandhar Technologies Limited IPO:

Objectives of

Sandhar Technologies Limited IPO

are: 1.Offer for Sale 2. Fresh Issue (i) Repayment or prepayment in full, or in part of certain loans availed by our Company (ii) General corporate purposes

Sandhar Technologies Limited IPO Details:

Open Date: Mar 19 2018
Close Date: Mar 21 2018
Total Shares: 1,54,36,145
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 512 Cr.
Lot Size: 45 Shares
Issue Price: ₹ 327-332 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 30 2018

Promoters And Management:

(i) Dharmendar Nath Davar is the Chairman and Non-Executive, NonIIndependent Director of our Company. He was first appointed as a Director on July 2, 1994. He has a bachelors’ degree in commerce, and a masters’ degree in arts (economics) from Delhi University. This apart, he is a certified associate by the Indian Institute of Banking and Finance. He started his career at the Punjab National Bank, and is a former chairman of the Industrial Finance Corporation of India. He has over five decades of experience in the fields of finance, banking, corporate laws, and management. (ii) Jayant Davar is the Co-chairman and Managing Director of our Company. He is the founding Director, and is the Promoter of our Company. He holds a bachelors’ degree in mechanical engineering from the Punjabi University,Patiala,and has successfully completed the owner / president management programme from the Harvard Business School. He was the chairman of the Confederation of Indian Industries, Northern Region, and has been the president of the Auto Component Manufacturers Association in the past. He has three decades of experience in the auto components sector. He was awarded the distinguished alumnus during the year 2009 from Thapar University, Patiala. (iii) Arvind Joshi the Whole-time Director of our Company. He was appointed as a Director on May 31, 2013. He was first appointed as the CFO and Company Secretaryon December 4, 2006. He holds a bachelors’ degree in science from the University of Calcutta, a bachelors’ degree in law from the University of Delhi, and is an Associate Member of the Institute of Chartered Accountants of India, as well as the Institute of Company Secretaries of India. He has over 20 years of experience in managing corporate finance, legal, and commercial functions across diverse businesses and companies in India and overseas.

Capital Structure:

Authorized Share Capital (70,000,000 shares at FV@10) 70 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (51,154,564 Shares at FV@10) 51.154 cr
Present Issue (1,54,36,145 Shares at FV@10) 90,36,145- Fresh Shares 64,00,000- OFS 9.036cr
Retail Quota(<2 Lkah) 35%
HNI & QIB Quota(>2 Lakh) 65%
Paid Up Capital after the issue 60.19 cr

Financials of Sandhar Technologies Limited IPO:

 1. Balance Sheet Snippet[ Figures of FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 3013.34 Million
      (ii) Asset 10741.40 Million
      (iii) Liability 7705.91 Million
      (iv) Net Worth(Asset- Liability) 3013.34 Million
      (iv) Debt/Equity 2.58
      (v) ROCE 29%
      (vi) RONW(PAT/Net Worth) 13%
2. Profit n Loss Snippet
     (i) Revenue of last 5 years is growing at a CAGR of 11.26%
    (ii) PAT of last 5 years is growing at a CAGR of 29%[Excellent]
    (iii)EBITDA Margins: 9.3%
    (iv) EPS=  11.36( post Issue)
    (v)  P/E(post issue)=30(reasonably priced)at the cutoff price of 332
3. Cash Flow Statement
The company is  generating positive cash flow in last 5 years, which is good for the business to sustain in future.

Comparison With Peers:

Name of the Company Face value EPS P/E RoNW (%)
Minda Corporation 2 4.59 40.62 14.76
Suprajit Engineering 1 8.77 33.24 23.82
Gabriel India 1 5.68 32.91 18.12
JBM Auto 5 15.9 33.18 15.7
Minda Industries 2 21.2 52.46 23.11
Sandhar Technologies Limited 10 7.66 43.34 13.01

Recommendation on Sandhar Technologies Limited IPO:

Review and Recommendation of

Sandhar Technologies Limited IPO

from our side is: The Issue seems to be reasonably priced at PE of 29 as compared to its peers in the market. The Company too has excellent list of clients. The company is intended to utilize the money raised from IPO proceeds to reduce the debt which in future reduces the finance cost of the company. So we are recommending a buy rating for listing gain and long term as well.

Lead Manager of Sandhar Technologies Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited

Registrar of Sandhar Technologies Limited IPO:

  1. Link Intime India Private Limited

Company Address:

C-101 A, Ansal Plaza, HUDCO Place, Khelgaon Marg, New Delhi – 110 049, India Tel No: +91 11 4051 1800 E-mail: investors@sandhar.in Website: www.sandhargroup.com Tel No: +91 124 451 8900 Fax No: +91 124451 8911

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Sandhar Technologies Limited IPO as on
21-Mar-2018 22:00:00 IST

No.of shares offered No. of shares bid No. of total times
3,085,505 44,720,505 14.49
2,336,147 14,916,645 6.39
5,451,009 7,716,915 1.42
- - -
- - -
10,872,661 67,354,065 6.19
No.of shares offered No. of shares bid No. of total times
3,085,505 14,949,450 4.85
2,336,147 11,644,920 4.98
5,451,009 5,728,995 1.05
- - -
- - -
10,872,661 32,323,365 2.97
No.of shares offered No. of shares bid No. of total times
3,085,505 29,771,055 9.65
2,336,147 3,271,725 1.40
5,451,009 1,987,920 0.36
- - -
- - -
10,872,661 35,030,700 3.22

Discussion on Sandhar Technologies Limited IPO:

    Current GMP of Sandhar is 25-30!!!! SGX nifty is around 10246 which is up more than 100 points from Wednesday closing of Nifty. So we can accept a Gap up opening on Monday. Brace yourself for the bumper listing on Monday!!!!!!

    Sandhar Technologies Ltd.,; Basis Of Allotment
    Ret : 1.295281×
    45 Shs Cat 82:91
    NII : 6.181893×
    Listing : Mon 2 Apr 2018 on NSE & BSE.
    IPO Price Fix @ Rs.332/-.

    *Ipo*

    *BANDHAN BANK*

    Premium: 32 * 34

    *SHANDHAR*

    APPLICATION 225

    PREMIUM : 8 * 10

    Whoa!!!! The QIB and HNI quota has subscribed heavily. But alas Retail Quota just ended up at .88x. That is why retail investor seldom makes money in the market.

    I have applied one lot. Guys feel free to apply.

    I’ve applied multiple applications. Seems like a good bet for listing gains 🙂

    In Sandhar Technologies

    Akash Manek Bhansali
    Currently holds 25.35 lakh shares … ie 4.95% of the Company

    Which is locked in for 1 year post listing

    icici 5-7 with almost negligible volume
    sandhar 10-12 with no volume
    karda 13-15 with less volume from @⁨Dinesh

    By Analyzing the Balance Sheet and Profit n Loss Statement of the Sandhar Technology, it is concluded that company’s Debt/Equity=2.58, ROCE=29%, ROE=12% and RONW=13%. If we consider the PAT growth to be 29% then EPS of the FY 18-19 would be around 14.6 and if we consider PE of 30 then the price should be around 438. So atleast 30% upside can be seen here. Apply for good listing gain.