Endurance Tech makes stellar debut on bourses

Shares zoom 37% on listing day

Endurance Technologies made a stellar debut on the bourses as its shares soared 37 per cent on the listing day. This is the third best debut day performance by any company that listed in 2016. Shares of Endurance closed at Rs 647.70 apiece on the BSE - Rs 175.7 or 37.2 per cent higher than the issue price of Rs 472 a share. The stock listed at Rs 570 apiece - a 21 per cent premium.

This share's impressive performance was amid weakness in the broader markets. On Wednesday, the benchmark Sensex closed 0.24 per cent lower. Endurance had tapped primary markets to raise Rs 1,160 crore. The issue received an overwhelming response as the initial public offering (IPO) was subscribed 43.7 times. The Aurangabad-based company raised Rs 348.5 crore by allotting shares to anchor investors at a price of Rs 472 apiece. Among the institutions that were allotted shares in this pre-IPO placement were the government of Singapore, Nomura, Goldman Sachs, ICICI Prudential, and Birla Sun Life.

The complete issue was an offer for sale on account of stake sale by private equity investor Actis and the promoter. While Actis had tendered 19.3 million shares, promoter Anurag Jain sold 5.3 million shares.

Endurance is the third auto ancillary company to come up with an IPO in 2016. Earlier, GNA Axles and Precision Camshafts had successfully launched their IPOs. GNA Axles shares have zoomed more than 20 per cent since listing, while Precision Camshafts shares are currently trading two per cent below their issue price. Notably, the shares of Precision Camshafts rallied close to eight per cent on Wednesday.

Endurance was established in 1985 in Aurangabad, Maharashtra. The company specialises in manufacturing of aluminum casting, transmission and braking devices for automobiles. The company's clients include Bajaj Auto, Hero MotoCorp and Tata Motors.

According to Prime Database, 22 companies have raised more than Rs 20,500 crore during 2016 (calendar year) so far. This is the best year for primary markets since 2010 when 64 firms raised more than Rs 37,000 crore through IPOs. The amount raised is expected to touch the Rs 30,000-crore mark during the current calendar year as some of the big IPOs including PNB Housing Finance, Varun Beverages and Bharat Matrimony are expected to hit the markets over the next few months.