Endurance Technology Day 2 saw massive subscription of 92%

Day two of Endurance Technologies IPO saw a pickup in subscription after the tepid day 1. The IPO witnessed a 92 per cent subscription. The issue received bids for a massive quantity of 1,58,70,960 shares against 1,72,29,118 shares offered by the company, according to the data registered with the National Stock Exchange.

At the beginning of the IPO, Endurance Technologies fixed the price band at Rs 467 to 472 per equity share for the offer which is scheduled to close today (7th October 2016). The issue is being managed by Axis Capital along with Citigroup Global Markets India Private Limited. Shares of the company are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Brokerage firms are positive on the ongoing public offer of Endurance Technologies. According to the brokerage houses at the price band of Rs 467 to 472 each share; the Initial Public Offer is priced at a PE band of 22.6 to 22.8 times on its consolidated Financial Year 2016 EPS (earning per share). Valuations are comparable to that of peers of Endurance Technologies such as Gabriel India and Rico Auto trading at an FY16 multiple of 22.9 and 29.6 times, respectively, but just a little expensive to Munjal Showa trading at an FY16 multiple of 13.6 x (based on the closing price of 4thOctober 2016).

The company is an auto component manufacturer which is focused in design, development, validation, testing, manufacturing, delivery as well as aftermarket sale service for a wide range of technology-intensive auto component products.

The product and services of the Company in India includes:

• Raw and machined aluminium castings like high pressure die castings, low pressure die castings as well as aluminium alloy wheels for motorcycles.
• Suspension products like shock absorbers for scooters, motorcycles and also 3 wheeler, front fork for motorcycles and scooters, hydraulic dampers for quadricycles.
• Transmission products like clutch assemblies, cork and paper based friction plates for motorcycles and three wheelers and Continuous Variable Transmission (CVT) assemblies for scooters
• Brake systems like hydraulic disc brake assemblies including calipers, master cylinder as well as rotary disc brake for motorcycles & scooters along with hydraulic drum brake assemblies and tandem master cylinder for three wheelers
• After-market services to cater to the replacement market

Considering the robust performance of the auto sector in the current times, Endurance Technologies looks like a good prospective for investment.

Today is the last and final day of the IPO and only 8 per cent left to reach full subscription.

You can also read "Endurance Technologies is the new kid in the IPO Block."

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