Sansera Engineering Limited going to inaugurate first public offer (IPO) this week Rs 1,282.98 crore. The automotive component maker is looking to take its issue to the market on Tuesday. The company was incorporated in 1981 and specializes in manufacturing precision parts for the automotive industry as well as the non-automotive sector. Its main focus is on the passenger vehicles and commercial vehicle vertical in the two-wheeler segment as well as the automotive sector. It also caters to other sectors such as agriculture and even aerospace. Given the importance of these areas and the role the company plays, this is an IPO one should keep an eye on going forward.
Having said that, here are the top 10 things you should know before Sansera Engineering Ltd. IPO Opens for subscription.
10 Key Details About Sansar Engineering Limited IPO
1) Sansera Engineering IPO Issue Size, Overview
The issue size of Sansera Engineering IPO is Rs 1282.98 crore. It is to be noted that this is a book-built IPO and consists solely of an Offer for Sale (OFS) which aggregates for the same amount. There are a total of 17,244,328 equity shares in the IPO.
2) Sansera Engineering IPO Dates
The public issue will open on September 14 and will be open for three days. After this it will stop its subscription on 16 September. Any anchor booking that can happen for the IPO will happen on September 13, a day before the issue opens for trading.
3) Issue Price Band
The public issue price ranges from Rs 734 to Rs 744 per equity share, with Rs 2 per equity share as the face value of the IPO.
4) Sansera Engineering IPO Gray Market Premium (GMP)
As per data sourced from IPO Watch, the gray market premium of Sansera Engineering IPO at the time of this article was Rs 80. This indicated that the issue was trading at Rs 814 to Rs 824 per equity share in the unlisted gray market.
5) Sansera Engineering IPO Allotment, Listing
Based on the allotment, the company is eyeing the date on September 21. It plans to introduce refunds to unlucky investors on September 22, while the recognition is due the next day, September 23. The listing date, though not confirmed, tentatively sits on September 24, 2021.
6) Objective of IPO
The company plans to meet its OFS of 17,244,328 equity shares by selling to the shareholders. It also plans to get the benefit of listing equity shares on the stock exchanges.
7) Sansar Engineering IPO Lot Size
The issue has a minimum of 20 shares as its lot size with an application amount of Rs 14,880. At the top end of the lot, it has allotted 260 shares with a cut-off amount of Rs 193,440 for application. This allows retail investors to apply up to 13 lots, which is the upper limit of the lot size.
8) Investor Reservation for Sansera Engineering IPO
In terms of the reserve share for the issue, retail individual investors have 35 per cent allocation. Qualified Institutional Buyers (QIBs) have the highest reserve share at 50 per cent. Non-institutional investors (NIIs) have only 15 per cent reservation.
9) Company Promoter
The promoters of the public issue of the company are S Shekhar Vasan, FR Singhvi, Unni Rajagopal K and D Devaraj.
10) Company Overview
The company which was incorporated in 1981 as a manufacturer of precision components for the automotive and non-automotive segments, has a wide market. The company supplies forged and machined products to most of the OEMs. For FY21, the automotive sector contributed 88.45 per cent to revenue and non-automotive 11.45 per cent. The company derives about 65 per cent of its revenue from India and the remaining 35 per cent from other countries. The company is one of the leading suppliers of Connecting Rods globally. The company has 15 manufacturing plants across India.
For the financial year 2021, Sansera Engineering reported a total income of Rs 157.23 crore as compared to Rs 147.31 crore in the previous year. The net profit for the financial years 2021, 2020 and 2019 stood at Rs 109.86 crore, Rs 79.91 crore and Rs 98 crore respectively. As far as the net debt is concerned, the company managed to reduce it from Rs 563.76 crore in FY19 to Rs 484.60 crore in FY21.
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