Sansera Engineering lists at 9.07% premium

Sansera Engineering made a decent market debut on September 24, opening at Rs 811.50 on the National Stock Exchange, compared to the issue price of Rs 744, marking a premium of 9.07%. On the BSE, Sansera opened at Rs 811.35, at a premium of 9.05%. The Rs 1,282.98 crore crore-public issue received bids for 13,88,39,000 shares so far against the total size of 1,21,09,166 shares, according to the stock exchange data. The issue was subscribed 11.5 times. The portion reserved for retail investors was subscribed 3.15 times, the qualified institutional buyers category was subscribed 26.47 times and the non-institutional category received 11.37 times subscription.

The IPO comprised a pure offer for sale (OFS) of 17,244,328 shares by its existing shareholders and promoters. Hence none of the proceeds would be coming to the company’s balance sheet.

What does it specialise in?

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.