Sansera Engineering Limited is going to open its initial public offering (IPO) worth 1,282.98 crore, this week. The automotive components maker is looking to take its issue to the market on Tuesday. The company was incorporated in 1981 and it specialises in the manufacture of precision parts for the automotive industry as well as the non-automotive sector. Its main focus is that of the two-wheeler segment as well as passenger vehicles and commercial vehicle verticals in the automotive sector. It also caters to other areas such as agriculture and even aerospace. Given the significance of these sectors and the role the company plays, this is an IPO that one should keep an eye on going forward.
Having said that, here are the top 10 things you should know before the Sansera Engineering Limited IPO opens for the subscription.
10 Key Details about the Sansera Engineering Limited IPO
1) Sansera Engineering IPO Issue Size, Overview
The Sansera Engineering IPO has an issue size of Rs 1282.98 crore. It should be noted that this is a book-built IPO and consists entirely of an offer for sale (OFS) that aggregates to the same amount. The IPO has a total of 17,244,328 equity shares.
2) Sansera Engineering IPO Dates
The public issue is set to open on September 14 and remain open for a duration of three days. It will then close its subscriptions on September 16. Any anchor bookings that might take place for the IPO would happen on September 13, a day before the issue opens for trading.
3) Issue Price Band
The public issue has a price of Rs 734 to Rs 744 per equity share, with a Rs 2 per equity share as the face value of the IPO.
4) Sansera Engineering IPO Grey Market Premium (GMP)
The Sansera Engineering IPO, at the time of this article, had a grey market premium of Rs 80, according to data derived from IPO Watch. This indicated that the issue was trading at Rs 814 to Rs 824 per equity share on the unlisted grey market.
5) Sansera Engineering IPO Allotment, Listing
The company is eyeing the date, September 21 as the date for the basis of allotment to take place. It plans on initiating the refunds to the unlucky investors on September 22, while the accreditation is set to happen the following day on September 23. The listing date, though not confirmed, is tentatively sitting on September 24, 2021.
6) Object of the IPO
The company plans to carry out its OFS of up to 17,244,328 Equity Shares by selling the shareholders. It also plans to achieve the benefit of listing the equity shares on the stock exchanges.
7) Sansera Engineering IPO Lot Size
The issue carries a minimum of 20 shares as its lot size, with an application amount of Rs 14,880. On the higher end of the lot, it has allocated for 260 shares with an amount cut-off of Rs 193,440 for the application. From this, retail investors can apply for up to 13 lots, which is the upper limit of the lot size.
8) Investor Reservations for the Sansera Engineering IPO
In terms of reserved portions for the issue, the retail individual investors have a 35 pre cent allocation. The qualified institutional buyers (QIBs) have the highest reserved portion which stands at 50 per cent. The non-institutional investors (NIIs) have only a 15 per cent reservation.
9) Company Promoters
The promoters for the company’s public issue are S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj.
10) Company Overview
The company which was incorporated in 1981 as a manufacturer of precision components for the automotive and non-automotive segments, has a wide market. The company mostly supplies forged and machined products to OEM’s. For FY-21, the automotive sector contributed to 88.45 per cent of the revenue and non-automotive 11.45 per cent. The company derives around 65 per cent of its revenue from India and the rest 35 per cent from other countries. The company is one of the major suppliers of connecting rods globally. The company has 15 manufacturing plants across India.
For the fiscal year 2021, Sansera Engineering reported a total income of Rs 157.23 crore compared to Rs 147.31 crore from the previous year. The net profit for fiscal 2021, 2020 and 2019 was at Rs 109.86 crore, Rs 79.91 crore and Rs 98 crore respectively. As far as the net debt was concerned, the company managed to reduce it from Rs 563.76 crore in fiscal 2019 to Rs 484.60 crore in fiscal 2021.
Read all the Latest News, Breaking News and Coronavirus News here
For all the latest business News Click Here
