Endurance Technologies lists at Rs 572 on NSE, up 21% over issue price

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NEW DELHI: Auto component maker Endurance Technologies on Wednesday made a stellar debut on BSE by listing at Rs 570, a 20.76 per cent premium to its issue price of Rs 472 apiece.

On NSE, the stock got listed at Rs 572, up 21.19 per cent.

The Rs 1,161 crore initial public offering (IPO), which was sold between October 5 and October 7, was subscribed 44 times. Strong demand was seen from high networth individuals (HNIs) and qualified institutional buyers (QIBs) as the quota for the two categories was subscribed to 127 times and 53.43 times of the quota limits, respectively. The quota for retail investors was oversubscribed 2.60 times.

Analysts said Endurance Tech’s valuations are comparable with those of Gabriel India and Rico Auto, which are trading at FY16 earnings multiples of around 22.9 times and 29.6 timers, respectively.

The company is engaged in design, development, validation, testing, manufacturing, delivery and aftermarket sales and service of a wide range of technology-intensive auto component products. It supplies auto parts directly to original equipment manufacturers (OEMs).

The auto component maker has 18 plants in India and seven in Europe. It has 12 distribution centres and 256 distributors in India and exports products to 20 countries, directly and indirectly.

Some experts believe sales in the two-wheeler segment, which accounts for about two-thirds of the company’s total sales, may grow at a healthy pace going forward on back of good monsoon, which may boost rural spending. Besides, the seventh Pay Commission payout will add to demand for two-wheelers.