Sansera Engineering IPO - 7 Things to Know

The 40 year old auto component company, Sansera Engineering IPO, will open on 14 September and the issue will close for subscription on 16 September.

Here are 7 things you should know about the IPO about Sansera Engineering IPO

1)    Sansera Engineering manufactures precision parts for automobiles and other industrial uses. Its main customers are original equipment manufacturers (OEM). It is a global leader in supply of connecting rods and has 15 operational plants across India.

2)    In terms of revenues mix, 88.5% of its revenues come from the auto components business with the balance coming from the industrial precision segment. Sansera derives 65% of its revenues from India and 35% from abroad. 

3)    For the fiscal year ended Mar-21, Sansera reported revenues of Rs.1,572 crore and net profits of Rs.109.86 crore. The pandemic had impacted revenues in FY20 but FY21 has seen largely normalized revenues.

4)    Sansera Engineering brings strong design and engineering capabilities and its diversified portfolio across auto components and industrial components fairly de-risks its business model. It also spreads its risk between domestic and international markets.

5)    The entire IPO will be an offer for sale with promoters and early investors offering a total of 1,72,44, 328 shares in the price band of Rs.734 to Rs.744. At the upper end of the price band, the issue will be worth Rs.1,282.98 crore. 

6)    The book built IPO has a face value of Rs.2. Retail investors can apply in lots of 20 shares up to a maximum of 13 lots representing 260 shares of Sansera Engineering. The issue has allocated 50% for QIBs, 15% for HNIs and 35% for retail investors.

7)    The issue will be lead managed by ICICI Securities, IIFL Securities and Nomura Financial Advisory. The registrar to the IPO will be Link Intime India.
The OFS will basically enable Sansera Engineering to list on the exchange and also arrive at a market driven valuation of its business.

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Upcoming IPOs in 2021

IPOs in September