SEBI has approved the IPO of auto manufacturers company Sansera Engineering. The entire IPO of the company will be an offer for sale. The company will not raise any funds under this. No fresh shares will be issued through IPO. Under this, the existing shareholders and promoters of the company will sell their 1.72 crore shares. Client Ebene Ltd will sell 86.35 lakh shares through this IPO. This is the second attempt to bring Sansera Engineering’s IPO. Earlier in August 2018, the company had submitted IPO documents to SEBI but it stopped its plan midway.
35% reserved for retail investors
According to DRHP, 50 per cent of the issue will be for Qualified Institutional Buyers (QIBs). At the same time, 15 percent share is reserved for non-institutional investors i.e. NII. The remaining 35 percent has been kept as a reserve for retail investors. After the IPO, the company can join the line of its peer companies Endurance Technologies, Minda Industries, Sundram Fasteners, Suprajit Engineering, Bharat Forge, Motherson Sumi Systems and Mahindra CIE Automotive. All these companies are listed on the stock exchange.
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Sansera Engineering’s earnings increase
Sansera Engineering’s EBIDTA in 2018-19 stood at Rs 295 crore. Whereas the EBIDTA for 2017-18 was Rs 292 crore. The company’s net profit increased from Rs 98 crore to Rs 109.86 crore during this period. ICICI Securities, IIFL Securities, Nomura Financial Advisory and Securities are the book running and lead managers of this IPO.