Sansera Engineering IPO subscription and offer details Check GMP

Sansera Engineering limited a Bengaluru-based engineering company is coming up with an IPO that would open for subscription on 14th Sep.

About Sansera Engineering Limited

The company was incorporated on December 15, 1981. They commenced commercial production of passenger vehicle components in 1986 for Maruti Suzuki (formerly known as Maruti Udyog Limited). they are 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, that are critical for engine, transmission, suspension, braking, chassis, and other systems for the two-wheeler, passenger vehicle and commercial vehicle verticals.

Sansera Engineering Limited Competitive strengths

They are one of the top 10 global suppliers of connecting rods within the light vehicle segment (passenger vehicles with a gross vehicle weight of 3.5 tonnes or less, “Light Vehicle”)

2. One of the top 10 global suppliers of connecting rods within the commercial vehicle (“CV”) segment for CY 2020.

3. Within India, Sansera Engineering are one of the leading manufacturers of (i) connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and (ii) connecting rods and rocker arms for passenger vehicles.

4. Sansera Engineering are the largest supplier of connecting rods, rocker arms and gear shifter forks to two-wheeler OEMs in India. They are the largest supplier of connecting rods and rocker arms to passenger vehicle OEMs in India.

5. A technology-driven company with a focus on design, engineering, machine building and automation capabilities.

6. Diversified business beyond the automotive sector into various other sectors, including aerospace, off-road and agriculture.

7. Long-standing relationships with well-known Indian and global OEM customers.

8. Company has a skilled and experienced board of directors and management team

What are the financials of Sansera Engineering Limited?

Financial Year Ended	Revenue (₹ Crores)	Profit for the period (₹ Crores)	EPS (₹)
March 2019	1640.80	98.64	18.73
March 2020	1473.13	79.90	15.63
March 2021	1572.36	109.86	21.02

IPO Time-table of Sansera Engineering limited

Issue Period	14th September 2021 to 16th September 2021
Finalization of Allotment	21st September 2021
Initiation of Refunds	22nd September 2021
Credit of Shares	23rd September 2021
Date of Listing	24th September 2021
Mandate End Date	1st October 2021

Sansera Engineering IPO details

IPO Opening Date	Sep 14, 2021
IPO Closing Date	Sep 16, 2021
Issue Type	Book Built Issue IPO
Face Value	₹2 per equity share
IPO Price	₹734 to ₹744 per equity share
Market Lot	20 Shares
Min Order Quantity	20 Shares
Listing At	BSE, NSE
Issue Size	17,244,328 Eq Shares of ₹2 (aggregating up to ₹1,282.98 Cr)
Offer for Sale	17,244,328 Eq Shares of ₹2 (aggregating up to ₹1,282.98 Cr)
Employee Discount	36

Subsidiaries Of Sansera Engineering Limited

Fitwel

Fitwel commenced commercial production in 1987 with the manufacturing of hand tools as its core business

Sansera Mauritius

Sansera Mauritius, in which Sansera Engineering Limited has a 100% stake, owns a 100% stake in Sansera Sweden. Sansera Mauritius does not have any operations.

Sansera Sweden

In April 2017, Sansera Mauritius acquired a 100% stake in Sansera Sweden, which is primarily engaged in the manufacturing of connecting rods for heavy commercial vehicles mostly in the European market.

Sansera Engineering IPO Promoters

S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj are the company promoters.

Sansera Engineering IPO Objective

To carry out the Offer for Sale of up to 17,244,328 Equity Shares by the Selling Shareholders
achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Is Sansera Engineering IPO Price is underpriced or overpriced?

Its IPO price band is Rs 734 to Rs 744 per share.

1) On the upper price band of Rs 744 and the last 3 years average EPS of Rs 18.42, the P/E ratio works out 40x.

2) If we take FY21 EPS of Rs 20.55, the P/E ratio works out 36x.

3) This Means the company is asking IPO price in the P/E range of 36x to 40x.

3) There are listed peers in this segment like Minda Industries trading at P/E 90x (Highest) and Endurance Technologies trading at P/E 33x (Lowest) and industry average P/E of 60x. Hence the Sansera Engineering IPO price of Rs 744 (upper price band) at P/E of 36x to 40x is reasonably priced.