SJS Enterprises IPO – Leading player in aesthetic and decorative sector files for IPO

SJS Enterprises IPO will open for subscription between 1 Nov to 3 Nov, with the listing date set for 15^th November. The shares will be offered at a price of Rs.531-Rs.542 per share with a Face value of Rs.10 and a minimum investment worth Rs.14,337 for 1 lot (27 shares).

About the company:

SJS Enterprises is one the foremost players in the decorative and aesthetic sector of the country. The company is a provider of design-to-delivery aesthetic solutions with a variety of products for the automotive and consumer appliance industries. Product offerings of the company include decals and body graphics, 2D appliques and dials, 3D lux badges and domes, lens mask assembly, decoration parts etc. The company has a wide array of customers namely; Volkswagen, Mahindra and Mahindra, Baja Auto, Royal Enfield, Whirpool, Panasonic, Samsung, Godrej etc. As of 31^st March 2021, SJS Enterprises has manufacturing facilities in the cities of Bangalore and Pune with the annual production standing at 208.61 million and 29.50 million respectively. Owing to its worldwide presence, the company has supplied over 115 million parts to over 170 customers in around 20 countries in FY21.

Financials:

SJS Enterprises reported a revenue of Rs.255 crore in FY21 which was a small increase from the revenue of Rs.221 crore in FY20. Net profit increased by 15.70% from Rs.41.3 crore in FY20 to Rs.47.8 crore in FY21.

About the IPO:

The company expects to raise around Rs.800 crore from the new issue of shares. A minimum investment amount of Rs.14,337 (27 shares) has been set. The company promoters are Evergraph Holdings Pte. Ltd with 77.86% stake and K.A. Joseph with 20.74% stake. Entire IPO will be an offer for sale, Evergraph will be offloading shares worth Rs.688 crore and K.A. Joseph will be selling equity worth Rs.112 crore. Axis Capital, Edelweiss Financial Services and IIFL Securities are the lead book runners for SJS Enterprises IPO.

Strengths of the company:

1. A very well-established supply chain and network owing to its global presence

2. Strong fundamentals and financials

3. A wide array of premium products are offered by the company