Capital markets regulator SEBI (Securities and Exchange Board of India) has provided its nod for Sansera Engineering’s IPO. The auto element manufacturer’s IPO will completely be an present for sale by current shareholders and will not consist of a fresh problem of equity shares. The company’s current shareholders and promoters are searching to sell a total of 1.72 crore shares via the IPO. Sansera Engineering had filed its Draft Red Herring Prospectus (DRHP) with SEBI in June this year. The firm received the marketplace regulator’s nod last Friday, an update on SEBI’s internet site showed.
The OFS will consist of up to 86.35 lakh shares becoming 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 every single by Unni Rajagopal K, FR Singhvi, and D Devaraj. Being completely an problem, Sansera Engineering will not obtain any funds from the IPO. This will be Sansera Engineering’s second try to go public. Earlier, in August 2018, the firm had filed IPO papers with SEBI and had received a clearance to float the public problem. However, it decided not to go ahead with the IPO.
Based out of Bengaluru, Sansera Engineering is an engineering-led integrated manufacturer of complicated and crucial precision engineered elements across the automotive and non-automotive sectors. In the automotive segment, Sansera Engineering companies a wide variety of precision forged and machined elements and assemblies that are crucial for engine, transmission, suspension, braking, chassis and other systems for the two-wheeler, passenger car and industrial car verticals, Axis Securities stated in a note. In the non-automotive space, the firm tends to make precision elements for the aerospace, off-road, agriculture and other segments, such as engineering and capital goods.
According to the DRHP, half of the whole problem will be reserved for certified institutional purchasers, when non-institutional investors (NII) will get to bid for 15% of the problem and the remaining 35% will be out there for retail investors. The firm 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 monetary year 2018-19 to Rs 295 crore in the preceding monetary year. Net profit has Rs 98 crore to 109.86 crore in the identical time period. : ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities are the book operating lead managers to the IPO.