Sansera Engineering Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Sansera Engineering IPO

Sansera Engineering IPO: Key Details

  • Grey Market Premium (GMP) today: 55 – 60

Note: We ither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Sansera Engineering Limited, incorporated in 1981, are an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors.

Within India, they are one of the leading manufacturers of

  • connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and
  • cconnecting rods and rocker arms for passenger vehicles.

For Fiscal 2021, they derived 64.98% of the revenue from the sale of products from India and 35.02% of revenue from the sale of products from Europe, the USA, and other foreign countries combined.

Competitive Strengths

  • Leading supplier of complex and high-quality precision engineered components that is gaining market share across automotive and non-automotive sectors;
  • Well diversified business model;
  • Capabilities in engineering and design, machine building and automation resulting in continuous new product development and improved productivity
  • Long-standing relationships with well-known Indian and global OEM customers;
  • Financial performance that has outperformed the industry trends, with industry leading metrics; and
  • Skilled and experienced board of directors and management team

Company Strategy

  • Consolidate and strengthen global market share in existing automotive product portfolio and diversify into new products
  • Continue to leverage existing capabilities to diversify further into non-automotive businesses and expand addressable market
  • Retain and strengthen technological leadership through continued focus on engineering capabilities
  • Focus on operational efficiencies to improve returns

Proceeds from Sansera Engineering IPO will be used to:

The Company will not directly receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer

Sansera Engineering IPO: Financials

201920202021 Mar
Revenue from Ops₹1624.4 Cr₹1457.1 Cr₹1549.3 Cr
Profit before Excep*₹178.44 Cr₹88.68 Cr₹146.15 Cr
Profit after Tax98.06 Cr₹79.90Cr₹109.96 Cr
EPS (Basic)21.0215.6318.73
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS18.8438.9639.49
* Weighted Average for last 3 years

Sansera Engineering IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Sansera Engineering39.49
Highest (Minda Industries)95.7
Lowest (Suprajit Engineering)34.2

Sansera Engineering IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,282.98 Cr
Offer for Sale₹1,282.98 Cr
Face Value₹2/- per Equity Share
IPO Price₹734 – ₹744
Lot Size20 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open14/09/2021
Bid Close16/09/2021
Allotment Finalization21/09/2021
Initiation of Refunds22/09/2021
Credit of Shares23/09/2021
Listing Date24/09/2021

Lot Size and Price

LotsSharesAmount
120₹14,880
13260₹1,83,540

Promoter Group Holding

HoldingPercentage
Pre-Issue43.91%
Post-Issue36.56%

Sansera Engineering IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%34,23,442 shares
NII15%25,67,582 shares
RII (Retail)35%59,91,024 shares
Employee1,27,118 shares
Total100%1,21,09,166 shares

Sansera Engineering IPO: Risks

  • They do not have firm commitment long-term supply agreements with customers.
  • The business is dependent on the sale of products to certain key customers.
  • Pricing pressure from customers may adversely affect gross margin, profitability and ability to increase prices
  • Any failure to adapt to industry trends and evolving technologies to meet customers’ demands may materially adversely affect business
  • They derive a substantial portion of revenue from key product families, especially connecting rods, and if these products become obsolete it would have a material adverse effect on business

For complete internal and external risk factors, you can refer to the RHP of the company.

Sansera Engineering IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime

C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

ICICI Securities Limited
Edelweiss Financial Services Limited
Kotak Mahindra Capital Company Limited

Phone: +91 22 2288 2460
Email: [email protected]

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