Indian markets are raining with Initial public offerings. In these flourishing markets, Bengaluru-based company Sansera Engineering, a manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors, is all set to launch its IPO. However this is not the first attempt to launch the IPO by the firm, Sansera had filled with SEBI for IPO even in Aug 2018, and also received the green signal from the authorities, but the IPO wasn’t launched.
In the second attempt, Sansera Engineering filled its red herring in June 2021 and got the nod from the securities exchange board of India in August 2021. IPO opens on 14th September and closes two days after i.e. on 16th September 2021. Investors can bid for a minimum of 20 shares in one lot. Up to 50% of the total offer will be reserved for qualified institutional investors and 15% for noninstitutional investors while the remaining 35% would be for retail investors With this IPO, on the higher side of the price band, the company is expected to raise Rs1283 crores.
The major purpose for listing the form is to build brand image and provide liquidity to the shareholders. company has appointed ICICI Securities, IIFL Securities, and Nomura Financial Advisory & Securities (India), to manage the issue.
The IPO consists of a pure sale offer of 17,244,328 shares by its promoters and existing shareholders, with a price band of Rs734-Rs744 per share. Promoters and shareholders selling off their shares includes S Sekhar Vasan, Unni Rajagopal K, F R Singhvi, and D Devaraj. Client Ebene and CVCIGP II are also pushing their shares off the shelves in this IPO.
Investors can certainly have a chance in this IPO, but listing gains might not be available. However, the company is fundamentally strong with increasing profits on year on year basis. Further to add on, the company has a diverse portfolio, of products, segments, and customers as well. And it is one of the leading manufacturers of high-quality precision engineered components across automotive and non-automotive sectors.
As said and known, before investing do your homework, to be sure of your investment, after all it’s your hard earn money.