Sansera Engineering lists at 9% premium after mixed IPO show

Sansera Engineering Ltd, which makes components for automotive and aerospace companies, made a positive stock market debut on Friday as its shares listed at a 9% premium to its initial public offering (IPO) price.

The company’s shares listed on the BSE at Rs 811.35 apiece, up from the issue price of Rs 744. The shares touched a high of Rs 842 apiece before paring the gains to trade around Rs 829.65 around 10:30 AM.

The company now commands a market valuation of around Rs 4,262 crore. 

The BSE’s 30-stock benchmark was up 0.5% in morning trade and crossed the 60,000-mark.

Sansera is the third company to list on the bourses this month, after the September 14 debut of speciality chemicals maker Ami Organics Ltd and Vijaya Diagnostic Centre Ltd. 

Ami Organics had listed at a 48% premium and while the Hyderabad-based pathology chain’s shares had begun trading at a premium of barely 2%. However, both have charted different paths since then. While Vijaya Diagnostic’s shares are up 9% from the IPO price, shares of Ami Organics have jumped 117% in just eight trading sessions.

Sansera’s debut comes after its IPO received a lukewarm response from retail investors even though the overall issue sailed through easily. The IPO was covered 11.5 times, thanks mainly to strong interest from qualified institutional buyers (QIBs). 

The QIB portion was subscribed 26.5 times, as they bid for more than 9 crore shares. Non-institutional investors, which include corporate houses and high-net-worth individuals, bid for 11.4 times the shares reserved for them.

The quota reserved for retail investors was covered only about 3.15 times. 

Sansera’s IPO involved a sale of 1.7 crore shares by its promoters and Rohatyn, a private equity firm. This included about 51 lakh shares that anchor investors bought a day before the IPO opened for public bidding.

The overall IPO size is Rs 1,280 crore at the upper end of the Rs 734-744 price band. 

The company had earlier attempted an IPO in 2018-19. It had filed its draft proposal in August 2018 and received regulatory nod in November that year. However, it deferred its IPO owing to stock market volatility.

Sansera began operations almost 40 years ago. It makes components for automotive and aerospace clients that include Bajaj Auto, Yamaha, Honda Motorcycle and Maruti Suzuki.