Sansera Engineering Limited IPO

 

Incorporated in 1981, Sansera manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors. The company manufactures and supplies a wide range of precision forged and machined components and assemblies which are critical for the two-wheeler, passenger vehicle, and commercial vehicle verticals for the automotive sector. For the non-automotive sector, the company manufactures and supplies a wide range of precision components for aerospace, off-road, agriculture, and other segments. The company mostly supplies forged & machined products to OEM’s.

For FY’21, the Automotive sector contributed 88.45% and non-automotive 11.45% of the revenue. The company derives around 65% of its revenue from India and the rest 35% from other countries. The company is one of the major suppliers of connecting rods globally. The company has 15 manufacturing plants across India of which 9 are in Bangalore.

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)

Sansera Engineering IPO Tentative Timetable

IPO Open Date	Sep 14, 2021
IPO Close Date	Sep 16, 2021
Basis of Allotment Date	Sep 21, 2021
Initiation of Refunds	Sep 22, 2021
Credit of Shares to Demat Account	Sep 23, 2021
IPO Listing Date	Sep 24, 2021

FINANCIAL PERFORMANCE: 

On the financial performance front, on the consolidated basis, SEL has posted turnover/net profits of Rs. 1640.81 cr. / Rs. 98.06 cr. (FY19), Rs. 1473.14 cr. / Rs. 79.91 cr. (FY20) and Rs. 1572.36 cr. / Rs. 109.86 cr. (FY21). Though its top-line marked growth, the bottom line posted inconsistency. According to the management, due to a slowdown in the auto sector, they marked a downturn in their performance for FY20, but recovered soon despite pandemic and posted growth in FY21 following its diversification in other product lines and product mix. 

For the last three fiscals, SEL has posted an average EPS of Rs. 18.42 and an average RoNW of 11.98%. The issue is priced at a P/BV of xx based on its NAV of Rs. 166.96 as of March 31, 2021. Based on its EPS of Rs. 20.55 for FY21, the issue is priced at a P/E of 36.20 making it a fully priced issue. If we consider average EPS of Rs. 18.42 for the last three fiscals, then the asking price is at a P/E of 40.39.

Investors may consider investment for the medium to long term