Sandhar Technologies Limited IPO Message Board (Page 17)

Sandhar Technology Ltd. IPO schedule:
16 March- Anchor allocation
19 March – Offer Opens
21 March – Offer Closes
26 March – Finalisation of Basis of Allotment
27 March – Unblocking of ASBA
28 March – Credit to Demat Accounts
02 April – Listing on NSE & BSE

Total issue size Rs.514.72 crores @ upper price band (Fresh issue of Rs.300 crores and an offer for sale of 64 lakh shares by GTI Capital Beta Pvt. Ltd.)

Face Value - Rs.10 per share
Price band - Rs.32 - 332 per share
Lot size - 45 shares

Incorporated in October 1987, Sandhar commenced operations as a supplier to Hero for sheet metal components. Growing over the last 30 years, Sandhar has incurred investments to the tune of Rs 650 crore in the past 5 years towards acquisition of advanced technologies.

It also has some debts that have to be repaid with the funds raised through the IPO. The Rs 300-crore funds coming in will clear long-term debt of Rs 225 crore. Such repayment will help in reducing outstanding indebtedness and debt servicing costs, and enable utilization of our internal accruals for further investment in our growth strategies.

The IPO, while giving an exit option to private equity investor GTI Capital Beta (cost of shares @Rs.84), also dilutes the promoters’ stake in the company while company promoter mr. Daver not selling his stake. Pre-issue, the promoters share at 82.5% and post-issue, it will be 70.1%.

The company manufactures 21 categories of products, including safety and security systems such as lock assemblies, mirror assemblies, operator cabins for off-highway vehicles, aluminium spools, spindles, and hubs.

It has 31 manufacturing facilities across eight states in India, two manufacturing facilities in Spain, and one plant in Mexico. It also has an overseas assembly and packaging centre located in Poland.

Basic EPS & RoNW on consolidated basis:
2015 - Rs.7.52 - 14.77%
2016 - Rs.6.54 - 12.23%
2017 - Rs.7.66 - 13.01%
2018(HY) - Rs.6.69 - 10.35% not annualised.
NAV as on Sep.30, 2017 is Rs.64.55 per share.

@332 Market Cap is Rs.1998.33 crores.

Equity shares outstanding prior to the offer are 5,11,54,564 shares.
Equity shares outstanding after the offer are 6,01,90,708 shares.
Offer for sale of equity shares 64 lakh.

Category wise breakup:

QIB (50%): Rs.256.18 crores i.e. total 77,16,347 shares out of which 46,30,842 shares allocated to 21 Anchor investors including 15 schemes of 9 mutual fund houses and remaining 30,85,505 shares (Rs.102.44 crores) will be available for bids by QIB.

HNI/NII (15%): 23,36,147 shares amounting to Rs.77.56 crores.

Retail (35%): Rs.180.97 crores i.e. 54,51,009 shares so only 1,21,133 lots available for allotment in retail category.

Subscription required for 1X :-
QIB - Rs.102.44 crores.
HNI - Rs.7.56 crores.
Retail - 1,21,133 forms/lots only.

Interest cost for HNI for 1X @6% for 7 days
38 paise for 1X that means Rs.0.38 per share on applied shares. If we assume 300X HNI subscription than interest cost will be Rs.114 per share.

FY17 PE 43
@HY18 PE 29

Peer comparison:
Company -- FY18 PE - Net profit margin

Sandhar Tech- 29 - 3.3%
Minda Corp - 63 - 6.88%
Suprajit Eng. - 43 - 10.18%
Gabriel India - 22 - 5.34%
J B M Auto - 55 - 5.76%
Minda Ind. - 74 - 5.78%
Fiem Ind - 31 - 3.23%

I have Gabriel in my portfolio and adding Suprajit also for short to long term.

So overall a very good company, good management, well known local and global customers . Good demand in auto sector. Good track record of auto companies which gave handsome returns in the past. Only concern is crrent market sentiment.

So conclusion is that only 1,21,133 lots are available in retail category so 20-25% allotment chances expected. No chances of negative listing as well as bumper listing. So one can apply for some listing gain (10%+) as well as short to long term. Also keep in mind Endurance Technology IPO.

Thanks and regards
rrpjodhpur

Excellent analysis except nature of business and its spread. It is mini endurance Technologies.

Eagleeye plz tell the GMP for sandhar technology

Eagleeye plz tell the GMP for sandhar technology

R R PATEL SIR YOU ARE DOING GREAT JOB FOR GIVING USEFULL INFORMATION
PLS KEEO ON POSTING
THANKS VERY MUCH

Hello All,

Those who have waited for a good IPO (Short term or Long term) this is the one. Overall the company is very good and passenger/2 wheeler market is excellent, so this stock is worth applying. Another indicator Akash Bhansali struck a secondary market deal with GI capital and bought 5% share of this company for approx. 80 crs. Say no more, just jump on!

In current market sentiment i can''t give ranking for present IPOs for listing gain but some imp. points-

99% chances of positive listing in Karda, Sandhar, Mishra Dhatu & ICICI Sec. These IPOs may give 10% or more listing gain.

Moderate listing expected in big size Bandhan & HAL but chances of surprise also in positive side. May risky also.

So more importants will be the subscription figures of these IPOs so closely watch these and than decide. Don''t follow anyone blindly In market, read, study & do some analysys and than decide.
By the way i am applying single lot each in these 6 IPOs for short to long term view. I have not applied in Bharat Dynamics.

Which one is better sandhar techno or icici sec for listing again and if i go for long term perspective kindly suggest someone

If you go for long term then apply in ICICI

Endurance Technologies in the making

Will return is possible.I am confident.

In case of offer for sale the average cost of aquisition by the selling shareholders /promoters must be disclosed in clear terms.

CNBC Sandip Jain v DD sharma ka ipo mai view galat batate hai past ipo. DD sharma says :IEX IPO apply ,but listing discount Sandip sharma says : shalby ipo apply but listing discount.

They advised people on trapped stocks to buy so that they can or their trapped client can exit immediately in morning. also free hit share may be a trapp to exit

SANDEEP JAIN( JAIN IRRIGATION), D D SHARMA(SINTEX INDUSTRIES) GORANG SHAH,( IDEA CELLULAR) THEY ALWAYS SUGGEST ORDINARY STOCK
I REQUESTED TO ALL FRIENDS PLS CHECK BELOW PARAMETER BEFORE INVESTING IN STOCK MARKET
01 SHAREHOLDING PROMOTER NOT LESS THAN 45 % NO PLEDGE IF SHAREHOLDING LESS THANT 45 THAN FII DII HAVE GOOD HOLDING
02 MUTUAL FUND ALSO INVEST IN THIS STOCK
03 YOU SHOULD COMPANY PRODUCTS
04 DEBT(LOAN) NOT MORE 25% OF TOTAL ASSETS
05 PRICE TO BOOK NOT MORE THAN 1.5 TO 2
06 CASH IN BOOKS
07 COMPANY PRODUCT FUTURE DEMAND
08 INVEST ONLY THANT MARKET NIFTY PE 15 TO 18 OR 19 SUBJECT TO MARKET CONDITION
09 NEVER BUY VALUE PICK STOCK NEXT DAY OPEN MARKET BUY ON CORRECTION TIME
10 SOME GOOD STOCK HOLD IN PORTFOLIO FOR NEXT GENERATION

THANKS

ignore all ipo due to 10% correction in Market.

R.R Patel, Gamble, Aniketiaf sir detail advice on
Bandhan and Sandhar technology

How many lots available fer retailer in Sandhar

Gmp of sandhar is 20-22

Gmp of Sandhar is 19-22

Anchor Investor list is good

Akash Bhansali of enam sec. Pick up 5% stack in sandhar technology

should i subscribe bandhan bank or sandhar tec . i have only one capacity so which one give to me best return for me plz advise me. as possible .

if you think for return then go with sandhar ..and if you think for sure but small return then go for bandhan bank

My take - apply Sandhar technologies ipo, avoid others (bdl, Hal, Bandhan and Karda)

Sandbar ipo also very expensive.In last six months, margins HV bn boosted to seek a better ipo pricing.In fact all issues coming up with v high prices, leaving hardly any thing for investors.

Bdl subscription was on the expected line. High price ipo, so everyone avoided except lic. HAL ipo subscription is also expected simillar response. Now all the expectations is from ICICI securities ipo and Sandhar technologies ipo.