The Initial Public Offering (IPO) of Sansera Engineering Limited will open on September 14. The IPO will close on September 16.
The company was incorporated as Sansera Engineering Private Limited on December 15, 1981 in Bengaluru, Karnataka, India as a limited liability company under the Companies Act 1956. It became a public limited liability company pursuant to a special resolution approved by our Shareholders at the EGM held on June 19, 2018 and the company name was changed to Sansera Engineering Limited. The Bangalore-based Karnataka Registrar of Companies (“RoC”) issued a new certificate of incorporation as a result of the conversion to a public limited company on June 29, 2018.
It is an integrated engineering manufacturer of complex and critical precision engineering components in the automotive and non-automotive sectors. Within the automotive sector, it manufactures and supplies a wide range of precision machined and forged components and assemblies that are critical to the engine, transmission, suspension, braking, chassis and other systems for verticals of two-wheelers, passenger and commercial.
Within the non-automotive sector, it manufactures and supplies a wide range of precision components for the aerospace, off-road, agricultural 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 from the company itself.
In India, auto component production, which includes sales to OEMs, exports, and the aftermarket) increased at a CAGR of 3.4 percent in FY2016-21, to 3,013 billion rupees from 2,553 billion rupees. CRISIL Research expects automotive components industry revenue to be led by demand from OEMs, which is expected to record a CAGR of 11.9 percent during fiscal 2021-26, to reach Rs 5.284 billion. . Production growth and increased outsourcing of auto component manufacturers by OEMs will drive demand from OEMs, according to the CRISIL report.
The offer is made through the Book Construction Process, in terms of Rule 19 (2) (b) of the Securities Contract Rules (Regulation), 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 where no more than 50 percent of the net offer will be available for allocation proportionally to Qualified Institutional Buyers (QIB). The QIB Portion provides the company with the consent of the Selling Investor Shareholders in consultation with the BRLM and the Promoting Selling Shareholders may allocate up to 60 percent of the QIB Portion to the Anchor Investors on a discretionary basis.
The par value of the capital shares is 2 rupees. The minimum price and the maximum price as determined and justified by the company and the investor selling shareholder in consultation with the BRLM and the promoter selling shareholders and the offering price determined and justified by the company. in consultation with the BRLM and the Selling Shareholders, in accordance with the SEBI ICDR Regulation, the company has mentioned.
It is proposed that the Capital Shares offered through the Red Herring Prospectus be listed on the Stock Exchanges. The company has received approval in principle from the BSE and NSE for the listing of the shares.
The principal managers of Book Running (BRLM) are ICICI Securities Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited. The registrar for the offer is LinkIntime.
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Sansera Engineering’s IPO has an issue size of Rs 1,282.98 crore. It should be noted that this is an initial public offering built on a book and consists entirely of an offer to sell (OFS) that is added to the same amount. The IPO has a total of 17,244,328 shares.
The public issue is priced from Rs 734 to Rs 744 per equity share, with Rs 2 per equity share as the face value of the initial public offering.
The promoters of the public issuance of the company are S Sekhar Vasan, FR Singhvi, Unni Rajagopal K and D Devaraj.