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Sansera Engineering IPO Date, Price, GMP

Written By Sushma Singh

Investing in IPOs is in trend along with growing investments in stock market. Trading in the stock market is an art and it needs a lot of calculations and analysis. Initial Public Offer is the way for an organization to go public. That means getting public funding for the first time in the organization. Investing in IPOs can be really profitable, and it is important to keep learning about it. In this article, we will learn about the IPO of an interesting company called Sansera Engineering. We will go over Sansera Engineering IPO details like Sansera Engineering IPO allotment date and more.

Sansera Engineering IPO Date, Price, GMP

Offering IPOs is only one time process in a lifetime for a company and it is the most crucial one too in order to realize what the company values to the public and how much subscription rate it goes to. In general, most companies issuing IPOs get listed within days of IPO closure. Let us now learn about Sansera Engineering.

About Sansera Engineering

Sansera Engineering website

Sansera Engineering was incorporated in 1981, S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj being the promoters of the company. Sansera Engineering is engaged in complex and critical component manufacturing business. They are organically from India and supply parts of two wheelers and four wheelers.

They are also involved in manufacturing of heavy duty vehicles which are commercial and mostly used as off road vehicles, agriculture, industrial and medical sector. Their vision is to provide the world with a top notch engineering corporation that maximizes Stakeholders value and they are working to build an employee driven and socially responsible Global engineering corporation using innovative methods and techniques and managing efficiently in order to have long lasting customer loyalty.

In 2017, they acquired Sansera Sweden which has facilitated their entry into these commercial vehicles. They have a well diversified business model along with great engineering and leadership capabilities and a long standing relationship with well known OEM customers. Sansera Engineering does have Global presence in various commendable countries. In India, they have more than 7 units set up already in places including Bangalore, Gujarat, Manesar, Pune etc. They have all the required certifications like ISO45001-OHSMS, IATF16949:2016 TUV NORD and much more.

Information about Sansera Engineering IPO

Stock exchange board | Sansera Engineering IPO
Photo by Pixabay on Pexels

Sansera Engineering company, a manufacturing company, is out with its IPO which was live on Sept 14, 2021 till Sept 16 2021. Sansera Engineering IPO was of a total of Rs. 1282.98 crores. It had a lot size of 20 shares where price of each share ranged from Rs. 734 to 744 per share.

Maximum limit to apply was 13 lots, that is equal to 260 shares, costing retail individual investors about Rs. 193440. Pre-Issue shareholding of promoters was 43.91% and post issue it went down to 36.56% which shows 7.35% decrease in the promoters holding. Some more details about the IPO are mentioned in the table below.

Key IPO Details Particulars
Nature of issue Book Building
Face value of share Rs. 10 per share
IPO Price band Rs. 734 – 744
Lot Size 20 shares
RII Maximum limit 13 Lots
RII Maximum Limit value Rs. 193440
Fresh Issued shares 0
Offer for sale size Rs. 1282.98 crores
Total IPO size Rs.1282.98 crores
Listing on BSE & NSE
QIB Quota 50 %
HNI Quota 10 %
Retail Quota 35 %
Pre Issue promoters share 43.91 %
Pre Issue private placement share 56.09 %
Post issue promoters share 36.56 %
Valuation Rs. 4168.54 crores

Competitive strengths

Here are some strengths of Sansera Engineering IPO.

  • Sansera Engineering’s financial performance has been strong for a long time.
  • Sansera Engineering has a well diversified portfolio of various segments, products, customers and with a strong geographical presence it has a great advantage overall.
  • Sansera Engineering is a team of well experienced managerial personnel.
  • They are the leading supplier of complex engineered components all around in the industry and have a great market captured in automotive and non automotive sector.
  • They possess great customer loyalty due to their strong quality and have long standing relationships with famous Indian and international OEM consumers.
  • Sansera Engineering has a great employee culture that emphasizes teamwork and collaborations actively.
  • They do have strong capability in designing and engineering.

Risks involved in Sansera Engineering IPO

Person checking stocks on laptop
Photo by Jason Briscoe on Unsplash

With great strengths, risks are always there somewhere too. Knowing those risks are more important than knowing the other components because it is the risk only which will let you predict how far you can go with any share in an industry. Here are a few risk factors for Sansera Engineering that you need to know.

  • Sansera Engineering lacks the quality of long time commitment in supplying products to customers. One of the reasons for the same can be that it is a highly volatile industry and committing for too long can be a risky situation for a manufacturing company that gives more emphasis on innovation.
  • It has certain key customers who are contributing to most of the sales. Every huge company is dependent on either a few vendors or customers. There is no harm in that and finding a new customer base needs good marketing only.
  • Due to fewer customers being key customers they have bargaining power which can adversely affect the pricing of the products and Sansera Engineering can fall into less gross Profits.
  • There is a continuing impact of the pandemic on the organization.
  • There is a seasonal and Cyclical reduction in demand for the products of Sansera Engineering across the operating verticals and sectors of the company.
  • Even after being really innovative, Sansera Engineering is failing to meet with innovation and technological advancement from foreign manufacturers.
  • Sansera Engineering has been seen failing to adapt to the industry trends and rapid changes in technology. It is understandable too, for a huge manufacturing company to update its machinery every year with new innovation is not even possible but this can be a large threat in the long run.
  • Sansera Engineering is dependent on third party for the transportation and timely delivery of its products and services to the customers which is quite a threat to this large of a company to outsource such a critical function contributing to customer satisfaction.
  • In case Sansera Engineering fails to compete effectively in a highly competitive environment that can be another threat to the organization.

Also Read: Tatva Chintan IPO Details, Date, Price, Analysis

Sansera Engineering financial performance

Stock charts | Sansera Engineering IPO
Photo by Nicholas Cappello on Unsplash

Here is a breakdown of Sansera Engineering finance over the past few years.

Particulars FY 2019-2020 FY 2020-2021 FY 2020-2022
Revenue Rs. 1641 crores Rs. 1473 crores Rs. 1572 crores
Total assets Rs. 1745 crores Rs. 1828 crores Rs. 1929 crores
Profit Rs. 98.06 crores Rs. 79.90 crores Rs. 110 crores
Net profit ratio 5.97 % 5.42 % 6.99 %

Sansera Engineering IPO Subscription Details

All the subscription details regarding Sansera Engineering IPO are mentioned in the table below. In the next section, we will go over Sansera Engineering IPO allotment date.

Date & Time

 

QIB

 

NII

 

RII

 

Employees

 

Total

 

Sept 14, 2021 0.29 times 0.07 times 0.87 times 0.36 times 0.53 times
Sept 15, 2021 0.38 times 0.22 times 1.72 times 1.03 times 1.02 times
Sept 16, 2021 26.47 times 11.37 times 3.15 times 1.37 times 11.47 times

Sansera Engineering IPO listing dates

Calendar
Photo by Towfiqu barbhuiya on Unsplash

Sansera Engineering IPO allotment date along with some other crucial dates regarding Sansera Engineering IPO are mentioned below.

Key IPO dates Particulars
Issue Opening date Sept 14, 2021
Issue closing date Sept 16, 2021
Allotment date Sept 21, 2021
Refund Initiation date Sept 22, 2021
Credit date Sept 23,2021
Listing date Sept 24, 2021

Listing Day Trading Information

After learning about Sansera Engineering IPO allotment date, let us go over some trading ups and downs that the IPO had on the listing day.

Particulars BSE NSE
IPO Price Rs. 744 Rs. 744
Open Rs. 811.35 Rs. 811.50
Low Rs. 800.80 Rs. 801.00
High Rs. 842 Rs.841.95

Sansera Engineering Company Products

Sansera Engineering Company Products page | Sansera Engineering IPO

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Sansera Engineering deals in two categories of the products which are as follows:

  • Automotive
  • Non automotive

Automotive segment

In automotive segment, they have 5 subcategories.

Two wheeler and Two wheeler EVs

When it comes to two wheelers, Sansera Engineering is engaged in manufacturing of the following things

  • Various engine parts
  • Connecting rods
  • Rocker arms
  • Finger followers
  • Balancer Shaft
  • Gear shifter Fork

Passenger vehicles

Along with two wheelers, Sansera Engineering also manufactures parts for passenger vehicles which are as follows.

  • Engine parts – Connecting rods, sprockets, adapter, Rocker shaft and Rocker arms.
  • Transmission parts – Gear Shifter Fork, Housing Shift Lever Shaft, Housing Shift Lever, Lever Shift, Spacer Input Gear, Arm Shift, Shaft Propeller and Dhaft control.
  • Suspension or steering parts – Attachment Lower Ball Joint and Input shafts.
  • Braking system parts – Ring retainer.

Four wheelers (Hybrid)

The next category in automotive segment is hybrid four wheelers and these following parts are manufactured by Sansera Engineering.

  • Trans Axle parts – Pinion Differential Drives (low), Pinion Differential Drives, Gear Motor Counter Drive and Gear Motor Counter Drives.
  • Generator shafts – Motor Generator Shafts and Motor Rotor Generator Shafts

Commercial vehicles

The final category is commercial vehicles and Sansera Engineering in involved is making these parts.

  • Engine parts – Fractured Connecting Rod – HCV, Fractured Connecting Rod – HCV, Fractured Connecting Rod – LCV, Valve Bridges, Bracket, Support Injector and Rocker Arm
  • Braking system parts – Crankshaft for Braking Assembly and Guide Bush (Braking Assembly Parts).
  • Transmission parts – Gear Shifter Fork and Intermediate Ring
  • Chassis parts – Cabin Tilt System Parts

Also Read: Nykaa IPO Review: Date, Price and Analysis

Non Automotive Segment

Non Automotive Segment section

In the non automotive segment, Sansera Engineering is involved in these.

  • Off road Vehicles – Balancer Shaft, Crankshaft Assembly, Connecting Rod and Gear Shifter Fork.
  • Industrial and stationary Engines – Integral Crankshaft, Rocker Arm Assembly, Valve Bridge and pump barrel.
  • Agriculture – Camshafts, Common Rail, Pump Housing, Body Flange and Connecting Rods.

Investing has become simple in today’s world. There are many apps using which you can invest in any IPO you want, including Sansera Engineering IPO. We hope you learned about Sansera Engineering IPO allotment date and all the other important details. Make sure you know and analyze everything before investing in it.

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Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

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