Automotive Components Supplier Sansera Engineering raises INR 382 crore ahead of IPO

Sansera Engineering Ltd, a supplier of automotive components, announced that it has raised Rs 382 crore from anchor investors ahead of its initial public offering, which begins on September 14. According to a circular posted on the BSE website on September 13, the company has chosen to allocate 51,35,162 equity shares to anchor investors at a price of Rs 744 each, valuing the transaction at Rs 382.05 crore.

The anchor investors include the Singapore government, the Monetary Authority of Singapore, Nomura, the Abu Dhabi Investment Authority, Axis Mutual Fund (MF), ICICI Prudential MF, SBI Life Insurance Co Ltd, Max Life Insurance Company, and Kuber India Fund.

The initial public offering (IPO) is wholly comprised of promoters and investors making an offer for sale (OFS) of 17,244,328 equity shares. Existing investors Client Ebene, CVCIGP II Employees Ebene, and promoters S Sekhar Vasan, Unni Rajagopal K, FR Singhvi, and D Devaraj are among those selling shares in the OFS.

The public subscription period for the issuance, which has a price band of Rs 734-744 per share, will begin on September 14 and end on September 16.

The initial share offer is intended to raise Rs 1,283 crore at the top end of the pricing band. Qualified institutional buyers (QIBs) will receive half of the issue size, retail investors will receive 35%, and non-institutional investors would receive 15%.

The company anticipates that listing the equity shares will improve the company's visibility and brand image, as well as providing liquidity to stockholders. The listing will also give the equity shares a public market. This is the company's second public offering.

Sansera Engineering had previously filed IPO papers with Sebi in August 2018 and gained regulatory approval to float the public offering. It did not, however, proceed with the rollout.

The Bengaluru-based company is a technology-driven integrated manufacturer of complex and crucial precision-designed components for the automotive and non-automotive industries.

For the two-wheeler, passenger car, and commercial vehicle verticals, the company offers a comprehensive range of precision forged and machined components and assemblies that are vital for engine, transmission, brake, and other systems.

Sansera Engineering makes precise components for the aerospace, off-road, agriculture, and other industries, including engineering and capital goods, in the non-automotive industry. The issue's book running lead managers are ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities (India) Private Limited.