SJS Enterprises had mobilised Rs 800 crore through its public issue which was entirely an offer for sale by its promoters. Hence the company did not receive any money from the offer.
SJS Enterprises, a leading player in the Indian decorative aesthetics industry, opened with a 1 percent premium on November 15. The stock opened at Rs 547 on the BSE against issue price of Rs 542.
The IPO had a tepid response from investors as it was subscribed only 1.59 times during November 1-3. All kind of investors provided more or less equal support to the issue. The portion set aside for qualified institutional buyers, non-institutional investors, and retail investors was subscribed 1.42 times, 2.32 times, and 1.38 times respectively.
The company had mobilised Rs 800 crore through its public issue which was entirely an offer for sale by its promoters. Hence the company did not receive any money from the offer.
Experts had a subscribe rating on the issue given its strong financial performance, and net debt free status.
SJS Enterprises supplied over 115 million parts with more than 6,000 SKUs (stock-keeping units) in FY21 to around 170 customers in approximately 90 cities across 20 countries. "The company has industry leading profitability margins and robust return ratios (ROE at 15.15 percent and ROCE at 31.63 percent in FY2021). SJS has delivered strong financial performance despite Covid turbulence and it is a net debt free company as on FY21," said Canara Bank Securities.
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"There are no listed company to compare the valuations. On the back of growing aesthetic decorative industry (20 percent CAGR in FY21-FY26E, as per CRISIL) and being key industry supplier, the company has potential to grow business going forward. So, we recommend to subscribe the issue for long term gains," the brokerage added.
Hem Securities also assigned a subscribe rating to the issue. "Company being leading aesthetics solution provider with an extensive suite of premium products in a growing industry, has strong manufacturing capabilities supported by an established supply chain and delivery mechanism. Company has strong innovation and product design and development capabilities with long-standing customer relationships & has strong financial position and track record of financial performance," it reasoned.
SJS Enterprises reported a profit of Rs 47.76 crore in FY21, increasing from Rs 41.28 crore in FY20. Revenue from operations also increased to Rs 251.61 crore from Rs 216.17 crore in the same period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.SJS Enterprises makes a tepid listing on exchanges, stock lists at Rs 547 - Moneycontrol.com
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