Sansera Engineering IPO: The IPO of automobile component maker Sansera Engineering will open for subscription next week. No new shares will be issued under this IPO of 1283 crores, that is, shares will be sold under Offer for Sale (OFS) in this issue. The price band for this issue has been fixed at Rs 734-744 per equity share and investors will get an opportunity to invest in this IPO in the period 14-16 September next week. The company had filed draft papers with the market regulator SEBI for this IPO in June 2021 this year and SEBI had given approval for the issue in the first week of August. The company has already tried to get listed in the domestic equity market. About three years ago in August 2018, the company had submitted papers to SEBI to bring the IPO and SEBI’s approval was also received.
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Lot size of 20 shares
The lot size of 20 shares has been fixed for the IPO i.e. according to the upper price of Rs 744 in the price band, investors will have to invest at least Rs 14880. Through this issue, the promoters of the company will reduce their stake. Under the issue, 1.72 crore equity shares will be sold, in which S Shekhar Vasan will offload 20.58 lakh shares, Unni Rajagopal 5.71 lakh, FR Singhvi 5.71 lakh and D Devraj 5.71 lakh shares i.e. sell so many shares of their share under the issue. Under OFS 86.35 lakh shares Client EBene and CVCIGP II Employees EBene will sell 48.36 lakh shares.
Under the issue, 9 crore shares have been reserved for the employees of the company and they can bid at a discount price of Rs 36 per share. 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and 35 per cent for retail investors.
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Company related details
- Sansera Engineering manufactures complex and critical precision engineered components for the automotive and non-automotive sectors.
- The company has 15 manufacturing plants across the country out of which 9 are in Bangalore.
- It is a leading supplier of Connecting Rods globally.
- 65 percent of its revenue comes from India and the remaining 35 percent from other countries.
- In the financial year 2021, the automotive sector accounted for 84.45 percent of the company’s revenue and the remaining 11.45 percent from the non-automotive sectors.
- The company’s revenue in FY 21 was Rs 1572.36 crore as against Rs 1828.24 crore in its previous financial year 2019-20. The company’s net profit (Profit After Tax) in FY 2021 was Rs 109.86 crore as compared to Rs 79.90 crore in its previous financial year 2020.
- Post listing in the market, it will join the league of Endurance Technologies, Minda Industries, Sundaram Fasteners, Suprajit Engineering, Bharat Forge, Motherson Sumi Systems and Mahindra CIE Automotive.