Bangalore based leading automotive manufacturer Sansera Engineering is going to open its public issue for subscription from September 14 and that will end on September 16. The company has priced its issue in the price band of Rs 734-744. Sansera Engineering is planning to raise Rs 1283 crore through this offer for sale. After back to back IPOs on Dalal Street, Sansera Engineering is the 39th company to come with the IPO.
Currently, according to IPO Watch, the grey market premium of Sansera Engineering in the unlisted market is trading at the premium of ₹125. In terms of subscription, the retail portion has an allotment of 35 per cent for the IPO. The qualified institutional buyers (QIBs) were given a 50 per cent reservation for the issue. Meanwhile, the non-institutional investors (NIIs) have a 15 per cent reservation allotted to them. The bids can be made for a minimum of 20 equity shares for Rs 14,880 and maximum of 260 shares for 13 lots at Rs 1,93,440. The objective behind this IPO is to sell shareholders stake and to achieve the benefits of listing the equity shares on the Stock Exchanges
The foundation of Sansera Engineering was laid in 1981. The company is well known for manufacturing complex and critical precision engineered components and caters across automotive and non-automotive sectors. In the automotive sector, the company manufactures and supplies a wide range of machined components and assemblies for the two-wheeler, passenger vehicle, and commercial vehicle manufacturing. However, under the non-automotive sector, the company manufactures and supplies a wide range of precision components for aerospace, off-road, agriculture, and other segments. The company is one of the major suppliers of connecting rods globally. The company has 15 manufacturing plants across India of which 9 are in Bangalore.
As far as the financial performance of the company is concerned, Sansera Engineering’s revenue sharply rose from Rs 1473 crores in 2020 to Rs 1572 crore in 2021. The profit of the company, in 2020 stood at Rs 79.91 crore, however it rose to Rs 109.86 crore in 2021. In FY21, the Automotive sector constituted 88.45 per cent share in the total revenue and non-automotive 11.45 per cent of the revenue. The company derives around 65 per cent of its revenue from India and the rest 35 per cent from other countries. The company’s performance in improving the financial fundamentals looks phenomenal.
The company’s promoters are S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj. ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the books running lead managers to the issue.