Capital markets regulator SEBI (Securities and Exchange Board of India) has given its nod for Sansera Engineering’s IPO.
Capital markets regulator SEBI (Securities and Exchange Board of India) has given its nod for Sansera Engineering’s IPO. The auto component manufacturer’s IPO will entirely be an offer for sale by existing shareholders and won’t consist of a fresh issue of equity shares. The company’s existing shareholders and promoters are looking to sell a total of 1.72 crore shares through the IPO. Sansera Engineering had filed its Draft Red Herring Prospectus (DRHP) with SEBI in June this year. The company received the market regulator’s nod last Friday, an update on SEBI’s website showed.
The OFS will consist of up to 86.35 lakh shares being sold by Client Ebene Ltd, up to 48.36 lakh shares by CVCIGP II Employees EBene, up to 20.58 lakh shares by S Sekhar Vasan, and up to 5.71 lakh shares each by Unni Rajagopal K, FR Singhvi, and D Devaraj. Being entirely an issue, Sansera Engineering will not receive any funds from the IPO. This will be Sansera Engineering’s second attempt to go public. Earlier, in August 2018, the company had filed IPO papers with SEBI and had received a clearance to float the public issue. However, it decided not to go ahead with the IPO.
- Top IPOs bought by mutual funds in August: Chemplast Sanmar, Nuvoco Vistas, Devyani, Car Trade; rush continues
- Paras Defence and Space Technologies IPO opens Sep 21; check price band, grey market premium, offer details
- Chennai startup to soon list on NASDAQ, plans raising $912 million through public issue
Based out of Bengaluru, Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across the automotive and non-automotive sectors. In the automotive segment, Sansera Engineering manufacturers a wide range of precision forged and machined components and assemblies that are critical for engine, transmission, suspension, braking, chassis and other systems for the two-wheeler, passenger vehicle and commercial vehicle verticals, Axis Securities said in a note. In the non-automotive space, the company makes precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods.
According to the DRHP, half of the entire issue will be reserved for qualified institutional buyers, while non-institutional investors (NII) will get to bid for 15% of the issue and the remaining 35% will be available for retail investors. The company could join other listed peers such as Endurance Technologies, Minda Industries, Sundram Fasteners, Suprajit Engineering, Bharat Forge, Motherson Sumi Systems, and Mahindra CIE Automotive on the stock exchanges.
Sansera Engineering has seen its EBITDA jump from Rs 292 crore in the financial year 2018-19 to Rs 295 crore in the previous financial year. Net profit has Rs 98 crore to 109.86 crore in the same time period. : ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities are the book running lead managers to the IPO.