Sansera Engineering IPO opens TOMORROW; check issue size, company financials and other key details here

The Initial Public Offering (IPO) of Sansera Engineering Limited is opening on 14th September. The IPO will close on 16th September.  

The company was incorporated as Sansera Engineering Private Limited on December 15, 1981 at Bengaluru, Karnataka, India as a private limited company under the Companies Act, 1956. It was converted into a public limited company pursuant to a special resolution passed by our Shareholders at the EGM held on June 19, 2018 and the name of the company was changed to Sansera Engineering Limited. A fresh certificate of incorporation consequent upon conversion to a public limited company was issued by the Registrar of Companies, Karnataka situated in Bangalore (“RoC”) on June 29, 2018. 

It is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, it manufactures and supply a wide range of precision forged and machined components and assemblies that are critical for engine, transmission, suspension, braking, chassis and other systems for the two-wheeler, passenger vehicle and commercial vehicle verticals.  

Within the non-automotive sector, it manufactures and supply a wide range of precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods. It supplies most of its products directly to OEMs in finished condition, resulting in significant value addition by the company itself. 

In India, auto component production, which includes sale to OEMs, exports, and replacement market) increased at a CAGR of 3.4 per cent over fiscals 2016-21, to Rs 3,013 billion from Rs 2,553 billion. CRISIL Research expects the auto component industry’s revenue to be led by OEM demand, which is expected to log a CAGR of 11.9 per cent over fiscals 2021-26, to reach Rs 5,284 billion. Production growth and higher outsourcing to auto component players by OEMs will drive OEM demand, as per the CRISIL Report. 

The offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (SCRR) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50 per cent of the net offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs). The QIB Portion provides the company with the consent of the Investor Selling Shareholders in consultation with the BRLMs and Promoter Selling Shareholders may allocate up to 60 per cent of the QIB Portion to Anchor Investors on a discretionary basis. 

The face value of the equity shares is Rs 2. The Floor Price and Cap Price as determined and justified by the company and the Investor Selling Shareholder in consultation with the BRLMs and the Promoter Selling Shareholders and the Offer Price as determined and justified by the company in consultation with the BRLMs and the Selling Shareholders, in accordance with the SEBI ICDR Regulations, the company has mentioned.  

The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges. The company has received in-principle approval from BSE and NSE for the listing of the Equity Shares.  

The Book Running Lead Managers (BRLMs) are ICICI Securities Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited. The registrar to the offer is LinkIntime.

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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. 

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.  

The promoters for the company’s public issue are S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj.