Sansera Engineering Limited, the auxiliary automotive company, had recently closed its initial public offering (IPO). The show, which opened on September 14, remained open for trading for a total of three days and closed on September 16. The public offering itself saw healthy participation from its investors during Sansera Engineering’s IPO. In total, investors had subscribed to the issue approximately 11.47 times. Established in 1981, this company manufactures complex and critical precision engineering components that it supplies to the automotive and non-automotive industries. The company has 15 manufacturing plants across the country, 9 of these factories are located in Bangalore.

Here’s a recap of what you need to know about Sansera Engineering’s IPO before listing:

Presentation of Sansera Engineering’s IPO

Sansera Engineering’s IPO had an issue size of Rs 1,282.98 crore with a total of 1,724,328 shares. The public issue was also entirely an offer to sell (OFS) which amounted to the same. The issue was a book issue with a nominal value of Rs 2 per share. The IPO price was Rs 734 to Rs 744 per share.

Sansera Engineering IPO Gray Market Premium

The show had a Gray Market Premium (GMP) of Rs 50 at the time of this article, according to information on IPO Watch. This indicated that the issue was trading at a premium of Rs 784 to Rs 794 per share on the unlisted gray market.

Award of the IPO of Sansera Engineering, listing date

The attribution basis for this public issue is expected to take place next week, September 21. Subsequently, the first redemptions would be extended to the unlucky ones who failed to land a share during the issue’s trading days. On September 23, investors who were lucky enough to acquire shares will have them deposited into their Demat accounts. Regarding the listing of the company, the date is tentatively set for Friday next week, September 24. However, this date is not yet confirmed.

Sansera Engineering IPO subscription status (club lot size and subscription)

The IPO had a minimum lot size of 20 shares with a request amount of Rs 14,880. On the upper end of the lot there were 260 shares with a maximum request amount of Rs 193,440. On this range of lots, individual retail investors (RIIs) were allowed to request up to 13 lots at the upper lot limit. In terms of subscriptions, Qualified Institutional Buyers (QIBs) had signed up the most with a subscription of 26.47 times. Non-Institutional Investors (NIIs) had subscribed to the issue approximately 1.37 times and RIIs had subscribed approximately 3.15 times during the IPO. Employees also subscribed to the issue at 1.37 times.

Company outlook

Commenting on the business and the outlook for the future, Choice, a brokerage firm, said, “The business model is well diversified in terms of customer base, geographic spread and product portfolio. Since fiscal year 21, SEL has served 71 customers, including 47 from the automotive segment and 28 from the non-automotive segment. The revenue breakdown by sub-segment includes 50.4% of two-wheelers, 24.1% of passenger cars and 13.1% of CVs, aerospace at 3.8%, off-road at 4.2% during financial year 21. “

“At the highest price bracket of Rs 744, the issue is valued at a P / E of 34.8x based on FY21 EPS, which is in line with the peer average. P / E 34x follower. We believe strong growth in revenue is likely and a healthy EBIDTA margin of over 15% to drive profitability in the near future. Considering all of these parameters, we’re giving the show a subscription rating, ”Choice said in a rating. This indicated that there was a positive outlook for the company in the long term.

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