The Gurugram-based company has appointed Axis Capital and ICICI Securities as merchant bankers to advise it on its plans to list on the stock exchanges
Auto component manufacturer Sandhar Technologies plans to float an initial public offering this financial year to raise Rs 400-crore, according to a source familiar with the development. The Gurugram-based company has appointed Axis Capital and ICICI Securities as merchant bankers to advise it on its plans to list on the stock exchanges though it could not be independently confirmed.
The IPO will mostly comprise issue of fresh shares with Gaurav Dalmia-promoted GTI Capital, which is a minority shareholder in the company, likely to use the opportunity for an exit. Dalmia is a director on the board of the company.
Sandhar makes door handles for cars, wheel rims, locking systems, vision systems, clutch assemblies, brake panels and many other products auto products. The company, promoted by Chairman DN Davar and his family, counts Honda Cars as one of its biggest customers. The list includes Suzuki, Yamaha, Bosch, Korea’s Doosan and Hyundai Construction Equipment with TVS, Hero Group and BEML figuring among the local clients.
Started 30 years ago as a supplier of sheet metal products to Hero Honda (now Hero MotoCorp), the company today has 33 manufacturing plants in India and across the globe with an employee base exceeding 6,500 people. The company has several plants in Gurugram itself, and then in Haridwar, Bengaluru, Alwar, Chennai, Hosur, Indore, Mysore and Pune besides manufacturing units in Spain, Poland and Mexico.
According to data available on the stock exchanges, 19 companies have raised a little over Rs 26,000 crore via IPOs during the first six months of the current financial year (April-March).This April-September IPO collections have already been topped with just four issues -- those of Reliance Nippon Lifer Asset Management, HDFC Standard Life Insurance Company, General Insurance Corporation of India and The New India Assurance Company -- having raised nearly as much in the period since October 1.