SJS Enterprises IPO all set to make market debut today

SJS Enterprises IPO will be listed on the bourses on Monday, November 15, 2021. "SJS Enterprises Ltd's listing ceremony will be held at NSE on Monday, 15th November 2021. The spokespersons for the media interactions will be Mr. KA Joseph, Managing Director, and Mr. Sanjay Thapar, Executive Director, and Chief Executive Officer," said the company. 

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The initial public offer of SJS Enterprises has received lackluster response as the issue was subscribed 1.59 times on the last day. The Rs 800-crore IPO received bids for 1,67,97,537 shares against 1,05,46,140 shares on offer, according to the NSE data. The category for Qualified Institutional Buyers (QIBs) received 1.42 times subscription, while that for non-institutional investors 2.32 times and retail individual investors (RIIs) 1.38 times. 

IPO details  

SJS Enterprises had also raised Rs 240 crore from anchor investors. The company has fixed a price band of Rs 531-542 a share for this public offering. SJS Enterprises is a leading player in the Indian decorative aesthetics industry, offering a wide range of aesthetics products in the country. It is a "design-to-delivery" aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio. It caters to the requirements of the two-wheeler, passenger vehicle, commercial vehicle, consumer appliance, medical devices, farm equipment and sanitary ware industries. 

SJS Enterprises IPO post listing strategy 

Zee Business Manging Editor Anil Singhvi recommended to apply for this IPO with long-term view. He said strong promoters with a good track record, debt-free, cash rich company with strong cash flows and visible growth opportunities are working well for the company. "Only negative for this IPO is that valuations are not very attractive," Said Singhvi.    

What brokerage said? 

Brokerage firm ICICI Securities have earlier recommended 'subscribe' for this issue. "On a consolidated basis (inclusive of Exotech), SJS clocked EBITDA margins of 26.1% in FY21 with RoCE at ~19%. At the upper end of the price band ( 531-542) it is valued at ~32x FY21 P/E. With nearly ~50% capacity utilization levels (FY21), SJS possesses healthy organic growth prospects. We assign SUBSCRIBE rating on premiumisation play, strong financials," it had said.