Sansera Engineering Limited It had opened its initial public offering (IPO) yesterday on Tuesday. As soon as the first day of the company’s issue closed, the IPO received a good response from investors in the form of 53 per cent subscription. NS Sansera Engineering IPO It was scheduled to be done for three business days. It was open on 14 September and will close on 16 September. The public issue received bids for 64.18 lakh equity shares, while the offer size was equal to 1.21 crore equity shares. 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 earlier. IPO opened, which was on 13 September.
In terms of membership by individual investor groups, retail individual investors led the race with 87 per cent or 0.87 times membership on the first day of issue. The next biggest category was surprisingly the employee group which subscribed 0.36 times, or 36 percent, to the issue. Qualified institutional buyers (QIBs) had subscribed 0.29 times or 29 per cent to the issue and non-institutional investors (NIIs) subscribed only 0.07 times to the issue.
Sansera Engineering IPO has an issue size of 17,244,324 equity shares which is entirely made up of Offer for Sale (OFS). The IPO issue size is Rs 1,282.98 crore with a 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 information sourced from IPO Watch, the gray market premium (GMP) for the public issue at the time of this article was Rs 60. This indicated that the issue was trading at a premium of Rs 794 to Rs 804 per equity share in the unlisted gray market.
Speaking on the company’s position in the current market, JM Financial said in a note, “The company is one of the top 10 global suppliers of connecting rods within the light vehicle segment (passenger vehicles with a gross vehicle weight of 3.5 tonnes or less). ” Light Vehicle”) and one of the top 10 global suppliers of connecting rods within the Commercial Vehicle (“CV”) segment for CY 2020. (Source: The Ricardo Report). Within India, the company (i) for two-wheelers is one of the leading manufacturers of Connecting Rods, Crankshafts, Rocker Arms and Gear Shifter Forks and (ii) Connecting Rods and Rocker Arms for Passenger Vehicles. Notably, the company offers the largest range of Connecting Rods and Rocker Arms to Passenger Vehicle OEMs in India. Great supplier.”
Talking about the public issue, BP Wealth said, “They have a well-diversified portfolio of segments, products, customers and geography. On the valuation front, the issue is priced at a P/E of 36.2x based on FY21 earnings, diluted equity shares and an upper price band, that of its listed industry peers (i.e., Endurance Technologies -43.3x, Minda Industries). -91.6x, Sundaram Fasteners 50.4x, Suprajit Engineering-30.7x and Motherson Sumi-64.1x). Considering the strong product portfolio, advanced manufacturing capabilities and strong track record, we offer a “Subscribe” rating for the long term.
As far as the reservation is concerned, the QIB had the largest reserve share which was 50 per cent. Retail investors had 35 per cent reservation and NIIs 15 per cent. However, 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.
read all breaking news, breaking news And coronavirus news Here
.