Sansera Engineering Limited Wednesday completed its second day of trading for its initial public offering. The company on Tuesday opened the issue for subscription for three days. IPO. As the issue closed on the second day, September 15, the IPO investors subscribed a total of 1.02 times. The public issue received bids for 1.23 crore shares against the IPO size of 1.21 crore shares. September 16 is the third and last day Sansera Engineering IPO. The offer size was reduced to 1.21 crore from the earlier 1.72 crore equity shares as the company raised around Rs 382 crore from anchor investors a day before the IPO opening, which was on September 13.
As far as subscriptions are concerned, retail investors were the ones who subscribed the most on the second day of issue with a total subscription of 1.72 times. The employee category saw 1.03x subscription yesterday. Qualified institutional buyers (QIBs) and non-institutional investors (NIIs) subscribed to the issue 0.38 times and 0.22 times, respectively, during the day.
Sansera Engineering IPO has an issue size of 17,244,324 equity shares which is entirely made up of Offer for Sale (OFS). The total of the OFS along with the IPO issue size is Rs 1,282.98 crore. The issue has a fixed price band of Rs 734 to Rs 744 per equity share. The face value of the issue is also Rs 2 per equity share.
As per IPO Watch information, the Gray Market Premium (GMP) for Sansera Engineering IPO at the time of this article was Rs 70. This indicated that the issue was trading at a premium of Rs 804 to Rs 814 per equity share in the unlisted gray market.
Speaking on the company’s business model, BP Wealth said in a note, “From a product perspective, Sansera manufactures a range of components for multiple end applications in both automotive (2-wheelers, passenger vehicles, commercial vehicles) and nonautomotive (OFF). Is. -roads, agriculture, engineering and capital goods, marine and other) sectors. The company focuses on increasing its export revenue to reduce its dependence on the Indian market. Their revenue from the sale of products is geographically diversified with Europe, the US and other foreign countries accounting for 35.02 per cent, 30.62 per cent and 31 per cent of their revenue from the sale of products in the fiscal years 2021, 2020 and 2019 respectively.
Talking about the potential risks of this IPO, Marwari Financial Services said, “The business is dependent on the sale of products to a few key clients. Loss of any of these customers can adversely affect the business.”
Marwari Financial Services said, “Pricing pressures from clients could adversely affect gross margins, profitability and the ability to drive prices, which in turn could adversely affect the results of operations and financials.”
In terms of reservation, QIB had the largest reserve share which was 50 per cent. Retail investors were given 35 per cent reservation. There was 15 per cent reservation in NIIs, the smallest among all investor categories. On the other hand, employees got a discount of Rs 36 per equity share. The basis for allotment of the issue will be on September 21, about a week after the close of the issue. Thereafter, refunds will be initiated to those investors who were not able to hold a share on 22nd September. Successful investors will see their shares credited to their demat accounts on September 23. The listing date, though not confirmed, likely stands in September. 24, 2021.
read all breaking news, breaking news And coronavirus news Here
.