Sansera Engineering IPO: Opens today; Key details that investors should know before investing

The Rs 1,282.98 crore initial public offering (IPO) of the auto component manufacturer Sansera Engineering will open today, i.e., on Tuesday, September 14, 2021, and will be available for subscription till Thursday, September 16, 2021.

The IPO price band of the Bengaluru-based auto component maker has been fixed at Rs 734-744 per share. Retail investors can subscribe to the IPO by placing bids in the lot of 20 equity shares and multiples thereafter. The shares will be listed on both BSE and NSE.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent is for non-institutional investors.

The public issue is a 100 per cent Offer for Sale (OFS) of 17,244,328 equity shares by its existing shareholders and promoters including Client Ebene, CVCIGP II Employees Ebene and promoters – S Sekhar Vasan, Unni Rajagopal K, F R Singhvi and D Devaraj. Since the IPO is completely an OFS, the company will not directly receive any proceeds from the offer and all the proceeds will be received by the selling shareholders.

ICICI Securities, IIFL Securities and Nomura Financial Advisory and Securities (India) are the book running lead managers to the IPO while Link Intime India is the registrar of the issue.

Besides, the auto component maker Sansera Engineering has said that it has mopped up Rs 382 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Tuesday. The company has decided to allocate 51,35,162 equity shares to anchor investors at Rs 744 apiece, valuing the transaction to Rs 382.05 crore, according to a circular uploaded on the BSE website on Monday.

Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Axis Mutual Fund (MF), ICICI Prudential MF, SBI Life Insurance Co Ltd, Max Life Insurance Company and Kuber India Fund are among the anchor investors.

This is the second time when Sansera Engineering is trying to go public. Earlier in August 2018, the company had filed IPO papers with the market regulator SEBI and had also got clearance from it to float the issue. However, the company did not go ahead with the IPO launch.

The share allotment is likely to take place on September 21, 2021, while refunds would be initiated will happen on September 22, 2021, and the equity shares will be credited into the DEMAT accounts of allottees on September 23, 2021. The shares are expected to be listed on September 24, 2021.

Bengaluru-based Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, the company manufactures and supplies a wide range of components 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, the company manufactures and supplies a wide range of precision components for the aerospace, off-road, agriculture and other segments. Within India, Sansera Engineering is one of the leading manufacturers of (i) connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and (ii) connecting rods and rocker arms for passenger vehicles. Specifically, they are the largest supplier of connecting rods, rocker arms and gear shifter forks to two-wheeler OEMs in India. Additionally, Sansera is the largest supplier of connecting rods and rocker arms to passenger vehicle OEMs in India. (Source: CRISIL Report)