Sansera Engineering IPO ends, issue subscribed 11.47 times on the final day – check Anil Singhvi’s view here

The Initial Public Offering (IPO) of auto component maker Sansera Engineering Limited has been subscribed 11.47 times on the BSE on the final day of subscription. This information is as per the data available on the BSE Website till 5 pm on Thursday.

The Rs 1,283-crore initial share sale received bids for 13,88,39,000 shares against 1,21,09,166 shares offered, as per the BSE data. The three-day IPO was launched on September 14, 2021.

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The quota reserved for Qualified Institutional Buyers(QIBs) was subscribed 26.47 times, while non-institutional investors category was subscribed 11.37 times and Retail Individual Investors (RIIs) 3.15 times.

The initial public offer is of 1,72,44,328 equity shares, with price band range of Rs 734-744 per share. The company ahead of its IPO launch has mopped up Rs 382 crore from anchor investors.

The company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to shareholders. Also, the listing will provide a public market for the equity shares.

In his IPO preview, Zee Business Managing Editor Anil Singhvi had suggested that the investors, who can take risk and hold the stock for long-term, should subscribe or can be avoided. He added that investors should look at the valuations of the IPO and how it is compared to other listed companies.

Talking about the positive aspects, the managing editor said the track record of promoters is very good, while professionals with good industry experience have been appointed at different posts.

This is the company’s second attempt to go public. Earlier, Sansera Engineering had filed IPO papers with SEBI in August 2018 and had also received its clearance to float the public issue. However, it did not go ahead with the launch.

The Bengaluru-based firm is an engineering-led integrated manufacturer of complex and critical precision-engineered components across automotive and non-automotive sectors.

ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the managers to the offer. The shares will be listed on both NSE and BSE exchanges.