Sansera Engineering IPO Review 2021: Sansera Engineering will be the third major IPO to hit the markets this month. The IPO will be open from September 14th to September 16th. They aim to raise Rs 1,282.98 crores through a public offering.
In this article, we look into important information on the Sansera Engineering IPO and find out the possible prospects of the company. Keep reading!
Table of Contents
About the Company
Founded in 1981. Sansera Engineering is a well known engineering-led integrated manufacturer of complex and critical precision engineered components. Its products cater to the automotive and the non-automotive sectors.
The company produces a wide range of products that are critical for two-wheelers, passenger vehicles, and commercial vehicle manufacturing. These products include connecting rods, rocker arms, etc for 2W, PV and CV verticals.
When it comes to connecting rods Sansera is one of the top suppliers globally. In the non-automotive segment, the company manufactures a wide range of precision equipment across various segments like aerospace, off-road, agriculture, etc.
Sansera’s customers include various domestic and global automobile giants. The company also has maintained a good relationship with its customer Maruti Suzuki for over 3 decades. Its other decade long customers include Stellantis N.V. ( Fiat Chrysler Automobiles).
Domestic clients make up 65% of the company’s revenue whereas global clients make up the rest. An important point to be noted here is that 59% of the company’s revenues come from its top 5 clients alone.
The Automobile sector contributes 88.45% of its revenues with the non-automotive sectors contributing 11.45%.
Sansera has 15 manufacturing facilities. These include 1 located globally in Sweden and 9 of the remaining domestic plants are located in Bangalore.
The company’s listed competitors include:
- Endurance Technologies
- Minda Industries
- Sundram Fasteners
- Suprajit Engineering
- Bharat Forge
- Motherson Sumi Systems
- Mahindra CIE Automotive
Sansera Engineering IPO Review – Grey Market Premium
The shares of Sansera Engineering traded at around an 11% premium in the grey market before the IPO. The shares traded at a price of Rs.814-824 giving them a premium of Rs. 80 over their issue price band of Rs 734-744 per share.
Sansera Engineering IPO Review – Key IPO Information
The company’s promoters are Sekhar Vasan, Unni Rajagopal K, FR Singhvi, and D Devaraj. They along with other investors Client Ebene, CVCIGP II Employees Ebene plan to make an offer for sale of 17.24 million shares through the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹1,282.98 Cr |
| Fresh Issue | --- |
| Offer For Sale(OFS) | ₹1,282.98 Cr |
| Opening Date | Sep 14, 2021 |
| Closing Date | Sep 16, 2021 |
| Face Value | ₹2 per equity share |
| Price Band | ₹734 to ₹744 per equity share |
| Lot Size | 20 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Sep 24, 2021 |
The promoters have appointed ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities (India) Pvt Ltd as lead managers to the public issue. Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue.
In Closing
In this post, we covered the Sansera Engineering IPO Review. The IPO opens on 14th September and closes on 16th September 2021.
Investors however must note that this is not Sansera’s first IPO. The company had earlier planned for an IPO and also received clearance but did not go ahead with it. When it comes to the automobile industry investors must also be wary of the changes taking place.
As we can see there is a huge push for electric vehicles with many believing that EV’s are our future. In this case, the company will soon have to adapt and make huge changes in the near future.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the Sansera Engineering IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
