Sansera Engineering Limited IPO – Sept 14 to 16

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Sansera Engineering Limited IPO – Sept 14 to 16

September 08, 2021
Sansera Engineering Limited IPO – Sept 14 to 16

Sansera Engineering Ltd. is coming out with a fresh public issue to raise Rs 1,283 crores from the market.

Key details of the issue:

  • Issue opens – Sept 14 (Tuesday)
  • Issue closes – Sept 16 (Thursday)
  • Issue size – Rs 1,283 crores
  • Price band – Rs 734 to 744 per equity share
  • Bid lot – 20 shares and in multiples thereof
  • Employee discount – Rs 36 per share
  • Employee reservation – Equity shares aggregating up to Rs 9 crores

And here are some details of the company and further details on the Sansera Engineering Ltd. issue.

Company details:

Sansera Engineering Limited is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, they manufacture and supply a range of precision forged and machined components and assemblies, such as connecting rod, rocker arm, crankshaft, gear shifter fork, stem comp and aluminium forged parts, which 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, they manufacture and supply a range of precision components for the Aerospace, Off-Road, Agriculture and other segments, including Engineering and Capital Goods. They supply most of their products directly to OEMs in finished (forged and machined) condition, resulting in significant value addition by them.

For Fiscal 2021, they derived 88.45%, and 11.55% of their revenue from sale of products from the automotive sector and non-automotive sectors, respectively. They are a global supplier and for Fiscal 2021 they derived 64.98% of their revenue from sale of products in India and 35.02% of their revenue from sale of products in Europe, USA and other foreign countries combined.

They are one of the top 10 global suppliers of connecting rods within the Light Vehicle segment (passenger vehicles with gross vehicle weight of 3.5 tonnes or less) and one of the top 10 global suppliers of connecting rods within the Commercial Vehicle (CV) segment for CY 2020 (Source: Ricardo Report).

Their recently developed products include:

  • Suspension, rotor and aluminium forged components for internal combustion engines (ICE) and electric two-wheelers
  • Steering system components and drive train parts for ICE and hybrid passenger vehicles
  • Cabin tilt system components and braking system parts for CVs
  • Suspension components for off-road vehicles
  • Common rail systems for agriculture
  • Components for industrial engines within other non-automotive sectors

In addition, since April 1, 2021, they have developed:

  • Suspension and drive train components for electric two-wheelers
  • Braking system components for passenger vehicles
  • Machined engine casings for aerospace
  • Components for power transmission

They have received numerous awards over the years that bear testimony to their ability to successfully meet their clients’ requirements. Some of their recent awards include the Zero Defect Supplies and Best Quality Supplier awards from Toyota Industries Engine India Private Limited, received in 2021; Silver Boeing Performance Excellence Award from Boeing in 2020; Powertrain Supplier of the Year from Fiat Chrysler Automobiles (now called Stellantis NV) in 2019; Zero Defect Supply from Toyota Kirloskar Motors in 2019; and Quality Performance Award from Volkswagen AG in 2017.

As of July 31, 2021, they had 16 manufacturing facilities, of which 15 are in India in the states of Karnataka (Bengaluru, Bidadi, Tumkur), Haryana (Manesar), Maharashtra (Chakan), Uttarakhand (Pantnagar) and Gujarat (Mehsana), and one facility is in Trollhättan, Sweden.

Issue size: Rs 1,283 crores

Issue break-up:

  • QIB – 50% of the net offer – Rs 637 crores
  • NIB – 15% of the net offer – Rs 191 crores
  • RET – 35% of the net offer – Rs 446 crores

Listing: NSE and BSE

Registrar: Link Intime India Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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