SJS Enterprises IPO

 

SJS Enterprises is a major participant in the Indian decorative aesthetics business, with one of the largest product lines in the country. It is a specialist of “design-to-delivery” aesthetics products. SJS Enterprises IPO will hit the market on 01 November 2021.

About

SJS Enterprises can design, develop, and produce a wide range of products for a variety of clients, particularly in the automotive and consumer appliance sectors.

In Fiscal 2021, their company delivered over 115 million components with over 6,000 SKUs to roughly 170 clients in roughly 90 cities across 20 nations.

They stand out because of the breadth of their product portfolio, the high quality of their products, their product design and development capabilities, and the effectiveness of their partnerships with clients from diverse sectors across the world.

Manufacturing Facilities

Their products are made at modernized manufacturing plants in Bengaluru and Pune, India, with the plant in Pune purchased as part of their Subsidiary’s recent purchase.

The yearly total production of the Bengaluru and Pune plants was 208.61 million and 29.50 million items, respectively, as of March 31, 2021.

Their Company and their Subsidiary manufactured 91.94 million and 15.60 million goods, respectively, in Fiscal 2021, generating in operational utilisation rates of 44.07 percent and 52.88 percent, respectively, and income from operations of 2,516.16 million and 685.26 million.

Other products

They offer a wide range of aesthetics goods for the commercial vehicles, medical devices, agricultural equipment, and sanitary ware industries, in addition to primary items that cater to the demands of the two-wheeler, passenger vehicle, and consumer appliance segments.

Decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminium badges, “In-mould” label or decoration components (“IML/IMD(s)”), lens mask assembly, and chrome-plated, printed, and painted injection moulded plastic components are just a few of the products they offer.

Under their “Transform” trademark, they also provide a variety of products for the aftermarket of two-wheelers and passenger cars.

SJS Enterprises IPO

SJS Enterpricses, headquartered in Bangalore has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 800.00 Crore on 27 July, 2021.

There will be fresh issue of 688.00 Crore & OFS (Offer for sale) up to 112.00 value equity shares from existing Promoters mentioned in the DRHP of the company.

They got the approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 12 October 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		383.54	332.25	304.05
Total Revenue		255.15	221.27	240.76
Profit After Tax		47.77	41.29	37.60

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2019	12.35	12.35	1
Financial Year 2020	13.56	13.56	2
Financial Year 2021	15.69	15.69	3
Weighted Average	14.42	14.42

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

The following are some of the basic criteria and key strengths that go into determining the Offer Price:

• In a rapidly developing sector, leading aesthetics solution supplier with a comprehensive portfolio of premium goods.
• Production skills that are backed up by a well-established supply chain and delivery system.
• Strengths in product design and development, as well as innovation.
• Client relationships that have lasted a long time.
• Financial stability and a proven track record of financial achievement.
• Management personnel with significant knowledge and qualifications.

SJS Enterprises IPO Peer Comparison

There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their Company is not feasible.

SJS Enterprises IPO Details

IPO Opening Date	01 November 2021
IPO Closing Date	03 November 2021
Issue Type	Book Built
Face Value	10 per  share
IPO Price	531 to 542 per equity share
Market Lot	27
Min Order Quantity	27
Listing At	BSE, NSE
Issue Size	800.00 Cr.
Fresh Issue	688.00 Cr.
Offer for Sale	112.00 Cr.

SJS Enterprises IPO Dates

SJS Enterprises IPO opening date is 01 November 2021 , and the closing date is 03 November 2021 . The issue may list on 15 November 2021 .

IPO Open Date	01 November 2021
IPO Close Date	03 November 2021
Basis of Allotment Date	10 November 2021
Initiation of Refunds	11 November 2021
Credit of Shares to Demat Account	12 November 2021
IPO Listing Date	15 November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

SJS Enterprises IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of SJS Enterprises IPO.

SJS Enterprises IPO GMP ( SJS IPO GMP)

SJS Enterprises IPO Grey Market Premium is INR 35.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
14 November 2021	35	3300	350
13 November 2021	31	2600	250
12 November 2021	18	1800	200
11 November 2021	No Trade	No Trade	No Trade
10 November 2021	No Trade	No Trade	No Trade
09 November 2021	No Trade	No Trade	No Trade
08 November 2021	No Trade	No Trade	No Trade
07 November 2021	No Trade	No Trade	No Trade
06 November 2021	No Trade	No Trade	No Trade
05 November 2021	No Trade	No Trade	No Trade
04 November 2021	5	900	100
03 November 2021	No Trade	No Trade	No Trade
02 November 2021	18	1600	150
01 November 2021	20	1700	150
31 October 2021	22	2300	200
30 October 2021	No Trade	No Trade	No Trade
29 October 2021	No Trade	No Trade	No Trade
28 October 2021	No Trade	No Trade	No Trade
27 October 2021	No Trade	No Trade	No Trade
26 October 2021	No Trade	No Trade	No Trade

SJS Enterprises IPO Review

SJS Enterprises IPO is Good or bad, it totally depends on investors and traders view. It is a firm which you should subscribe to for the long term only. If you are interested only in listing gain then you might face volatility in SJS Enterprises IPO.

We will advise only risk taking traders to apply for listing gain or traders who are not willing to take risk should avoid this IPO for listing gain.

SJS Enterprises IPO Risk

• The impact of the COVID-19 epidemic on their business is undefined and impossible to predict.
• The loss of any of their important clients, or a decrease in demand for their products from their major customers, might have a negative impact on their company.
• In the automobile sector, they rely heavily on customers, and a drop in their performance, whether in India or internationally, may have a negative impact on their business.
• They work in an extremely dynamic industry, and stronger competition may result in revenue declines.
• With all of their clients, they do not have formal long-term commitment agreements.
• Their factory and warehouse are exposed to a variety of operational concerns, and their closure might have a negative impact on their business.

Other Threats

• They may not be able to properly integrate and manage Exotech, putting them at threat financially.
• They are subject to counterparty credit risk, and any payment delay or non-receipt might have a negative impact on their cash flow.
• It’s possible that they’ll have trouble carrying out their expansion plans and other business initiatives.
• Customer pricing pressure may have an impact on their gross margin, profitability, and capacity to raise prices.
• Any rise in the price price of raw materials, or volatility in the price of raw materials, might have a negative impact on their profit margins.
• Their Company, their Promoters, its Subsidiary, and their Directors are all involved in legal procedures, and the outcome of any of these proceedings might have a negative impact on the organisation.

Business model

Their organisation places a major emphasis on new product development (NPD). It features an in-house styling studio with design, development, engineering, and technical skills, allowing them to co-create new products with clients during the product development process.

At their Bengaluru facility’s design studio, they also create fresh designs. their products are subjected to rigorous quality inspections and testing in their laboratories.

They’ve established a supply chain and a well-distributed distribution system. Their subsidiary has adopted automation and ralized control through supervisory control and data collection systems, and their company has established ERP systems.

Clients

Among their most important clients are:

• Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto, Royal Enfield, and TVS Motors are examples of well-known automotive original equipment manufacturers (OEMs).
• Marelli, Visteon, and Mindarika are Tier 1 automotive component vendors.
• Whirlpool, Panasonic, Samsung, Eureka Forbes, Godrej, and Liebherr are well-known client durables/appliances manufacturers.
• Sensa Core, for example, in medical equipment company.
• Manufacturers of sanitary goods, such as Geberit.

Awards

Their clients have given us several honours and recognitions, notably for excellence in supply, quality, efficiency, delivery, and price competitiveness, demonstrating the value they provide.

The Automotive Component Manufacturers Association of India (“ACMA”) has given us honors, as well as accolades from the Quality Circle Forum of India (“QCFI”).

SJS Enterprises IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

SJS Enterprises IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
01 November 2021	1	0.00	0.01	0.65	N/A	0.33
02 November 2021	2	0.00	0.6	1.00	N/A	0.51
03 November 2021	3	1.42	2.32	1.38	N/A	1.59

Promoters

1. K.A. Joseph
2. Evergraph Private Limited

Promoters Holding

Pre Issue Share Holding	98.60%
Post Issue Share Holding

SJS Enterprises IPO Prospectus