Sansera Engineering was listed on September 24 at Rs 811.50, which is a 9 per cent premium over the issue price of Rs 744 per share. The stock opened at Rs 811.35 on the BSE, while the opening price on the National Stock Exchange was Rs 811.50. Sansera Engineering IPO was subscribed 11.47 times. As per the data available on the stock exchange, investors bid for 13.88 crore shares against a total issue size of over 1.21 crore shares.
The Rs 1,283 crore Sansera Engineering IPO opened for subscription during September 14-16. The price band was fixed at Rs 734-744 per share. The portion allocated for Qualified Institutional Buyers (QIBs) was subscribed 26.47 times, while that for non-institutional investors was booked 11.37 times. The portion set aside for retail investors was subscribed 3.15 times. Sansera Engineering IPO is an Offer for Sale (OFS) of 17,244,328 Equity Shares by outright selling shareholders. The auto manufacturing company will not get any income directly from the IPO.
Prior to the listing, the stock of Sansera Engineering was trading at Rs 35 in the unofficial market. The gray market premium of Sansera Engineering IPO was trading at Rs 775 above the higher end of the issue price.
On pricing of Sansera Engineering IPO, Choice Broking in a note said, “At the higher price band of Rs 744, the issue is priced at a P/E of 34.8x on FY21 EPS basis which is comparable to the peer average. is consistent. Back P/E of 34x. In our view, strong revenue growth and healthy EBITDA margin of over 15 per cent are expected to drive profitability in the foreseeable future.”
Sansera Engineering Limited is one of the top 10 global suppliers of Connecting Rods within the Light Vehicle segment and global suppliers of Connecting Rods within the Commercial Vehicle segment for CY 2020. With 16 manufacturing units spread across and outside the country, the Bengaluru-based company is one of the leading manufacturers of (i) Connecting Rods, Crankshafts, Rocker Arms and Gear Shifter Forks for Two Wheelers and (ii) Connecting Rods and Rocker Arms for Passenger Vehicles. is one of. It is also the largest supplier of connecting rods and rocker arms to passenger vehicle OEMs in India.
The business of Sansera Engineering Limited saw a remarkable improvement in H1FY21 from the impact of the Covid-19 led complete lockdown. Revenue grew 37 per cent year-on-year to Rs 910 crore H2FY21. The trend of margins also remained at a satisfactory level. It recorded EBITDA margin of 17.6 per cent and NPM 7.1 per cent in FY21, as against peer averages of 14 per cent and 7 per cent. Choice Broking said the ROE in FY21 stood at 12.5 per cent, which is expected to improve with expansion in revenue growth.
“Sansera Engineering Limited has strong credentials like long-term relationships of over 20-30 years with the likes of Honda Motorcycle & Scooter India, Bajaj and Maruti. The company’s revenue growth numbers far outpace the auto industry’s production volumes for 2W and PV due to its ability to develop new products, add new customers over the past three years, and increase the share of new products. existing customer. The focus on non-auto has also helped the company in volume growth. We believe steady wallet share gains along with accelerating auto production volumes in India as well as globally will support further volume growth. “We have a membership rating on the Sansera IPO,” said Milan Desai, Principal Equity Analyst, Angel Broking.
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