9 things to know about Sansera Engineering IPO
The price band for Bengaluru based company has been fixed at Rs 734-744 per share having a face value of Rs 2 per share.
Auto component manufacturer Sansera Engineering IPO (initial public offering) will hit the street on September 14 making it the 41st IPO of the current calendar year. The auto ancillary unit plans to raise Rs 1,282.98 crore through its maiden issue. Here are all the details about the offer.
Open and close date: The offer will open for subscription on September 14 and the bidding will close on September 16. The anchor book, if any, will open for a day before the issue opening.
Price band: The price band for Bengaluru based company has been fixed at Rs 734-744 per share having a face value of Rs 2 per share.
Lot size: Investors can bid for a minimum of 20 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,880 at the higher end of the price band. A retail investor can at max apply for 13 lots or 260 shares for Rs 1,93,440.
Issue size: The Rs 1,282.98 crore public offer is a pure offer for sale (OFS) of 17,244,328 shares by its existing shareholders and promoters.
Those offering shares in the OFS are existing investors including Client Ebene, CVCIGP II Employees Ebene, and promoters including S Sekhar Vasan, Unni Rajagopal K, F R Singhvi, and D Devaraj.
Objective of issue: Sine the entire issue is an OFS none of the proceeds would be coming to the company’s balance sheet.
What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.
About the company: Sansera Engineering manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors. The company manufactures and supplies a wide range of precision forged and machined components and assemblies which are critical for the two-wheeler, passenger vehicle, and commercial vehicle verticals for the automotive sector. For 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 mostly supplies forged & machined products to OEM’s.
The company derives around 65% of its revenue from India and the rest 35% from other countries. 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.
For the financial year ended March 31, 2021, the company reported total revenue of Rs 1,572.36 crore compared to Rs 1,640.81 crore in FY19. During the same period, despite a slowdown in top-line, its profits grew to Rs 109.86 crore versus Rs 98.06 crore in FY19.
Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are ICICI Securities, IIFL Securities and Nomura Financial Advisory And Securities (India). The registrar to the issue is Link Intime.
Issue timeline: The issue is likely to finalize the basis of allotment by September 21, and the initialization of refunds will take place by September 22. While the credit of equity shares to depository accounts of the allottee will be done on September 23. The diagnostics chain is expected to make its stock market debut on September 24, 2021.