Sansera Engineering IPO: Opens on September 14; Know the key details

Sansera Engineering IPO: The initial public offering (IPO) of the auto component manufacturer Sansera Engineering Limited will open on Tuesday, September 14, 2021. The public issue will be available for subscription till Thursday, September 16, 2021.

The Rs 1,282.98 crore public issue is a 100 per cent Offer for Sale (OFS) of 17,244,328 equity shares by its existing shareholders and promoters. The existing investors who are offering shares include 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 would will not directly receive any proceeds from the offer and all the proceeds will be received by the selling shareholders.

The promoters of the company have a fixed price band of the IPO at Rs 734-744 per share. Retail investors looking forward to subscribing to Sansera Engineering's IPO can place a bid in the lot of 20 equity shares and multiples thereafter. The shares will be listed on both BSE and the National Stock Exchange (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.

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.

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.

As per the Red Herring Prospectus (RHP), 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.

After listing the Bengaluru-based company will join other listed peers like Bharat Forge, Endurance Technologies, Minda Industries, Motherson Sumi Systems and Mahindra CIE Automotive among others.

Incorporated in 1981, 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)