GTI-backed Sandhar files for India IPO

The offer will comprise an undisclosed amount of freshly issued shares, which the company will sell for INR3 billion ($47 million), along with 8 million shares held by GTI, according to the prospectus. Pricing for the shares has not been announced. Sandhar will use INR2.25 million of the proceeds from the new shares to pay down its debt, with the remainder designated for general corporate purposes.

GTI currently holds 8.9 million shares in Sandhar, a 17.5% stake. It first invested in the company in 2012, buying 5 million shares held by Actis Capital for $8.9 million, and paying INR300 million in 2014 for another 3.9 million new shares. The 2012 sale represented a full exit by Actis, which first invested in the company in 2005.

Sandhar mainly provides safety and security systems to vehicle manufacturers both in India and worldwide. Its customers include Tata Motors, Hero Group, Honda, Suzuki, Caterpillar, and Komatsu. The company has 29 manufacturing facilities in India and eight more under construction, along with two in Spain and one in Mexico, and an assembly and packaging center in Poland.

Founded in 1987 as a supplier of sheet metal components to Hero, Sandhar now has 2,000 full-time employees and 5,000 contractors. For the year ended March 2017, the company recorded revenue of INR16.3 billion, up from INR15.2 billion the year before. Over the same period, net profit grew from INR335 million to INR392 million.

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• Topics
• South Asia
• Industrials
• IPO
• India
• manufacturing
• Exit