SJS Enterprises Ltd has received markets regulator SEBI's approval to launch an initial public offering (IPO), through which it plans to raise up to Rs 800 crore.
The Bengaluru-based company had filed its Draft Red Herring Prospectus (DRHP) for the IPO with SEBI in July, obtained its final observation and approval on October 5, as per the SEBI Processing status on Monday, 11 October.
The IPO is entirely an offer for sale (OFS) up to Rs. 688 crores by Evergraph Holdings Pte Ltd and equity shares aggregating up to Rs. 112 crores by K.A Joseph., according to the DRHP.
SJS Enterprises is led by experienced professionals K.A Joseph, Managing Director & Promoter and Sanjay Thapar, its chief executive officer. As per the CRISIL report determined in its DRHP it is one of the leading players in the Indian decorative aesthetics industry in terms of revenue in Fiscal 2020 and as at March 31, 2021. It offers a wide range of aesthetics products and has supplied over 11.5 cr parts with more than 6,000 SKUs in Fiscal 2021 to around 170 customers in approximately 90 cities across 20 countries. The growth of the Indian decorative aesthetics market in value terms is expected to surpass volume growth in demand for two-wheeler, passenger vehicle and consumer durables from fiscal 2021 to fiscal 2026 and is expected to grow at a CAGR of approximately 20.00% to reach approximately Rs 4920 crore by fiscal 2026.v
The company designs, develops and manufactures aesthetic products i.e 2D decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D badges (3D lux), domes, overlays, aluminium badges, IMLs, wheel covers, nameplates, radiator grills, bumper parts, bezels, door handles, instrument panel housings and aftermarket styling products and supplies to some well-known automotive OEMs such as Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto, Royal Enfield; auto component suppliers such as Marelli, Visteon, Mindarika; consumer durable and appliance companies - Whirlpool, Panasonic, Samsung, Eureka Forbes, Godrej, Liebherr; medical device manufacturers - Sensa Core as well as sanitary ware manufacturers such as Geberit.
Despite the initial impact of the COVID-19 pandemic and a slowdown in the automotive and consumer appliance industries, SJS Enterprises reported a 16.40% year-on-year (YoY) jump in its revenue from operations to Rs. 251.62 crore for the year ended 31st March 2021 against Rs. 216.17 crore a year ago, while its profit after tax during the fiscal year 2021 stood at Rs. 47.77 crore versus Rs. 41.29 crore a year ago.
As of March 2021, the consolidated annual production capacity including its subsidiary, Exotech was 23.81 cr products, collectively. In Fiscal 2021, it produced 10.75 cr products, collectively, resulting in capacity utilization rates of 44.07% and 52.88% respectively.
Axis Capital Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.