The Eligible institutional buyers purchased 26.47 times more than the chalked out slot sectioned for them along with the non-institutional investors who subscribed over 11.37 times.
The engineering-based components manufacturer, Sansera Engineering got listed on September 24, 2021, at Rs. 811, a 9 percent premium to the issue price which is marked at Rs. 744 apiece. As reported by Moneycontrol, the company’s stock was listed on the Bombay Stock Exchange (BSE) at Rs. 811.35, whereas the stock price on National Stock Exchange unwrapped at Rs. 811.50.
Earlier this month, from September 14 to September 16, a Rs. 1,283 crore worth public issue sealed an oversubscription by 11.47 times on the last bidding day where IPO of 1.21 crore shares amounted to the demand of more than ten thousand crore rupees.
Composition of the bid included a major portion of the bids from the participation of eligible institutional buyers, purchasing 26.47 times more than the chalked out slot sectioned for them. Non-institutional investors subscribed over 11.37 times and the retail investors bought 3.15 times.
The advancement from the issue will be given to the selling shareholders of the corporation since it was a wholesome of offer-for-sale.
The price band of 1.72 crore of issued equity shares stood at Rs. 734 to Rs. 744 per share.
Established in 1981, Sansera Engineering corporation manufactures precision engineering-based components inspired by the innovation in the manufacturing segment. The company claims to have grown its business components organically in India by building up supply channels with the two-wheeler and four-wheelers. Apart from the commercial automotive segment, the company also serves the non- automotive space in the country including medical, agriculture, road automobiles and industrial. Some of the company’s key people include S. Shekhar Vasan as Chairman and Managing Director, B.R. Preetham as Chief Executive Officer (CEO) and F.R Singhvi as Joint Managing Director.
Sansera grabbed a bulk profit of Rs. 109.86 crore along with the extended revenue of Rs. 1,549.27 crore in the financial year 2021.
The Brokerage Firm operator, BP Equities shared that the manufacturing company has powerful relationships with Indian as well as Global Original Equipment Manufacturers (OEMs) which offers a variegated portfolio of products manufactured, customers, segments as well as geography. He quoted, “On the valuation front, the issue is priced at P/E of 36.2x based on FY21 earnings, diluted equity shares and upper price band which is fairly priced when compared to its listed industry peers (i.e. , Endurance Technologies- 43.3x, Minda Industries-91.6x, Sundram Fasteners-50.4, Suprajit Engineering-30.7x and Motherson Sumi- 64.1x).”
He further informed about giving the ‘subscribe’ rating to the company for the long term after witnessing the company with a strong product portfolio, enhanced manufacturing potential and an unshakeable track record. “…asset turnover ratio at 1.15x in FY21 indicates that Sansera Engineering can sustain higher growth with likely improvement in automobile volume in the subsequent years,” he added.