Sansera Engineering IPO subscribed 11.47 times on the final day of the issue

The Rs 1,282.98 crore initial public offering (IPO) of the auto component manufacturer Sansera Engineering was subscribed 11.47 times on Thursday, September 16, 2021, the third and final day of its issue. The IPO received bids for 13,88,39,000 shares against issue size of 1,21,09,166 shares, according to the NSE data.

The Qualified Institutional Buyers (QIBs) portion was subscribed to 26.47 times while the Non-Institutional Investors (NII) and Retail Individual Investors (RIIs) portions were subscribed to 11.37 times and 3.15 times, respectively. The employees' portion was subscribed 1.37 times, a discount of Rs 36 per Equity Share to the eligible employee category.

The price band for the subscription of the offer was fixed at Rs 734-744 per equity share. The retail investors were allowed to bid for a minimum of 20 shares or in multiples thereof up to 13 lots. The shares will be listed on both BSE and NSE.

The IPO was a 100 per cent Offer for Sale (OFS) by its existing shareholders and promoters including 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 will not directly receive any proceeds from the offer and all the proceeds will be received by the selling shareholders.

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.

On the other hand, the auto component maker Sansera Engineering has mopped up Rs 382 crore from anchor investors ahead of its initial share sale. The company has allocated 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.

This was the second time when Sansera Engineering has tried 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.

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.

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.