Sansera Engineering’s Rs 1,283 crore IPO (initial public offering) will open next week for subscription, bringing the IPO fever back to Dalal Street. The auto component manufacturer’s IPO will entirely be an offer for sale by existing shareholders and won’t consist of a fresh issue of equity shares. Sansera Engineering IPO’s price band has been fixed at Rs 734-744 per equity share. The issue will open on Tuesday, 14 September, and will remain open for investors to subscribe to till Thursday, 16 September. Sansera Engineering had filed its Draft IPO papers with SEBI in June this year and received the market regulator’s nod in the first week of August.
Investors will be able to bid for the IPO in the fixed price band of Rs 734-744 per share, in a bid lot of 20 shares. This translates to a minimum investment of Rs 14,880. Promoters of the company will trim their stakes in the company through the public issue. The total offer for sale (OFS) of 1.72 crore shares will include 20.58 lakh shares by S Sekhar Vasan, and up to 5.71 lakh shares each by Unni Rajagopal K, FR Singhvi, and D Devaraj. OFS will also consist of up to 86.35 lakh shares being sold by Client Ebene Ltd and up to 48.36 lakh shares by CVCIGP II Employees EBene. Sansera Engineering will not receive any funds from the public issue.
Of the entire issue size, shares worth Rs 9 crore have been reserved for the employees of the company who can bid for the issue at a discount of Rs 36 apiece. Half of the issue is reserved for qualified institutional buyers (QIB), while 15% has been reserved for Non-Institutional Investors (NII) and 35% for retail investors. This will be Sansera Engineering’s second attempt to list on the bourses. Earlier, in August 2018, the company had filed IPO papers with SEBI and had received a clearance to float the public issue.
Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across the automotive and non-automotive sectors. In the automotive segment, Sansera Engineering manufactures 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. The company could join other listed peers such as Endurance Technologies, Minda Industries, Sundram Fasteners, Suprajit Engineering, Bharat Forge, Motherson Sumi Systems, and Mahindra CIE Automotive on the stock exchanges.