Sansera Engineering IPO Review, Sansera Engineering IPO GMP: The IPO of auto component maker Sansera Engineering Ltd will open for subscription today. The company has fixed a price band of Rs 734-744 a share for its Rs 1,283-crore initial share-sale. The IPO will remain open for public subscription till September 16.
The initial public offering (IPO) is entirely an offer for sale (OFS) of 17,244,328 equity shares by promoters and investors. Those offering shares in the OFS are existing investors Client Ebene, CVCIGP II Employees Ebene and promoters — S Sekhar Vasan, Unni Rajagopal K, F R Singhvi and D Devaraj. At the upper end of the price band, the initial share-sale is expected to garner Rs 1,283 crore. 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 for non-institutional investors.
Ahead of the IPO, Sansera Engineering said that it has mopped up Rs 382 crore from anchor investors. 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.
In the grey market, the unlisted shares of Sansera Engineering are commanding a premium of Rs 75 which is approximately 10 per cent of the price band.
Sansera Engineering 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.
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.
Within the automotive sector, the company manufactures a wide range of precision forged and machined components and assemblies that are critical for engine, transmission, braking and other systems for the two-wheeler, passenger vehicle and commercial vehicle verticals. In the non-automotive sector, Sansera Engineering manufactures precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods.