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 |
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 purposesSandhar 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:
Registrar of Sandhar Technologies Limited IPO:
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
Bid Details of Sandhar Technologies Limited IPO as on
21-Mar-2018 22:00:00 IST
Discussion on Sandhar Technologies Limited IPO:
19 Comments
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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!!!!!!
Applied 1 got 1
Allotment is out!!!!!!!
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
Sandhar IPO
GMP ₹17 +/- 1
Kostak 600
SUBSCRIPTION FIGURE @ 5:57PM
Retail on app basis – 0.98x
Overall – 6.08x
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.
Respected Admin please make here a real time chatterbox.
Sure. Will Add.
Applied 4 full app in sandhar lets see what will be the output on listing..
It should give 5% or so return on listing.. Let’s see.
I’ve applied multiple applications. Seems like a good bet for listing gains 🙂
I have decided to skip this IPO due to high valuation.
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.
how is this company???