Sansera Engineering initiated its business operations in 1981. The company manufactures engineering products related to the automotive segment in major quantities. This includes the fleet of two wheelers, commercial vehicles and passenger vehicles. The company is also into manufacturing non automotive sector parts relating to the field of Aerospace, Agriculture and more.
Major part of the company’s revenue comes from the automotive segment. This is equal to 88% of the revenue. Sansera Engineering also exports its products to various countries. It’s export business has a breakdown of 35% of its total sales. This means 65% of the company’s sales are done in India.
IPO DETAILS
Sansera Engineering Limited IPO is set to launch on 14th Sept., 2021. The subscription timeline extends till 16th Sept., 2021. The size for the IPO is 1282.98 Crore Rs.. Shares issued through Offer for sale are 1282.98 Crore Rs. No Shares are issued through Fresh issue. The minimum lot size is 20 shares and the price is set at 734 Rs. – 744 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 2 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 14th Sept., 2021 |
| CLOSING DATE FOR IPO | 16th Sept., 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 2 Rs. per share |
| IPO price band | 734 Rs. – 744 Rs. |
| LOT SIZE | 20 shares |
| MINIMUM ORDER QUANTITY | 20 shares |
| ISSUE SIZE | 1282.98 Crore Rs. |
| OFFER FOR SALE | 1282.98 Crore Rs. |
| FRESH ISSUE | No Fresh Issue |
| LISTING AT | NSE, BSE |
| LISTING DATE | 24 Sept., 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 14th Sept., 2021 |
| CLOSING DATE FOR IPO | 16th Sept., 2021 |
| IPO ALLOTMENT DATE | 21 Sept., 2021 |
| REFUNDS | 22 Sept., 2021 |
| DEMAT A/C CREDITED ON | 23 Sept., 2021 |
| IPO LISTING DATE | 24 Sept., 2021 |
The Sansera Engineering Limited IPO begins for subscription from 14th Sept., 2021. The IPO subscription would continue till 16th Sept., 2021. The allotment status for the shareholders who applied would come on 21 Sept., 2021. The refunds for the ones who did not get allotment would be initiated on 22 Sept., 2021. The DEMAT accounts of shareholders would be credited on 23 Sept., 2021. The listing of the company would be accompanied on 24 Sept., 2021.
Promoters and Lead Managers
The promoters of the company are D Devaraj, F R Singhvi, Unni Rajagopal and S Sekhar Vasan.
The lead managers are :
- ICICI Securities Limited
- Nomura Financial Advisory and Securities India Limited
- IIFL Securities Limited
The minimum lot size for the company is decided at 20 shares. This holding accounts to 14880 Rs.. The maximum lot size is decided at 260 shares. This amounts to Rs. 193440. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 20 shares | 14880 Rs |
| Maximum | 260 shares | 193440 Rs |
OBJECTIVES FOR THE IPO
- The money from the IPO can also be utilized to meet general corporate purposes.
- Diluting the early stakeholders share of the company into a public issue.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 19288 | 18282 | 17454 |
| REVENUE | 15732 | 14731 | 16408 |
| NET PROFIT | 1098 | 799 | 980 |
The company has been suffering from the COVID hit even today. This is noticeable in its revenue and profits. The company was doing utmost well till 2018-19. However in 2019-20, the revenues took a major hit of almost 1800 Crore Rs and the profits dipped by 180 Crore Rs. Hence in all there was a 10% loss on part of the company.
However the company managed to stay profitable and expand its asset base every year. The increase in the assets has been constant by the company. It is 1000 Crore Rs. every year. Thus the company is functioning well with almost 8% to 9% return on assets and revenue every year. One can invest into it after looking at the company’s charts and trends.
PROS
- The company has a huge asset base.
- Sansera Engineering derives 88% of its revenue from its automotive parts.
- The company also indulges itself in the export of its products. The sales from exports are equal to 35%.
- There are in all 15 manufacturing bases of the company in India. Out of all 9 are located in the city of Banglore.
CONS
- The company has been hit hard by the COVID situation. However it is trying to get up from the hit but the speed of growth has been limited due to the same.
Sansera Engineering Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Sansera Engineering Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
