The initial public offering of automotive components maker Sansera Engineering has been subscribed 53 percent on September 14, the first day of bidding. The public issue received bids for 64.18 lakh equity shares against the offer size of 1.21 crore equity shares
The offer size has been reduced to 1.21 crore equity shares from earlier 1.72 crore equity shares as the company mopped up Rs 382 crore from anchor investors on September 13.
The reserved portion of retail investors subscribed 87 percent. The portion set aside for employees was subscribed 36 percent. Non-institutional investors have put in bids for 7 percent of their reserved portion, while qualified institutional buyers' portion was subscribed 29 percent, the subscription data available on the exchanges showed.
Sansera Engineering plans to raise Rs 1,283 crore through its public issue, which is a complete offer for sale by promoters and investors. The price band for the offer has been fixed at Rs 734-744 per equity share.
Also read - Sansera Engineering IPO | 10 Key things to know before subscribing
It is an engineering-led integrated manufacturer of complex and critical precision engineered components 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.
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"Considering the FY-21 adjusted EPS of Rs 21.02 on post issue basis, the company is going to list at a price-to-earnings (P/E) of 35.40 with a market cap of Rs 3,822.5 crore while its peers namely Endurance Technologies and Minda Industries are trading at a P/E of 33.56 and 56.63 respectively," said Marwadi Financial Services.
The brokerage has assigned 'subscribe' rating to this IPO as the company is a leading supplier of precision engineered components that is gaining market share across automotive and non-automotive sectors and is available at reasonable valuation as compared to its peers.
The company is a global supplier and for FY21 it derived 64.98 percent of revenue from India and 35.02 percent of its revenue from Europe, USA and other foreign countries combined.
This is the 41th public issue launched in the current year 2021. So far 40 companies successfully raised more than Rs 74,000 crore through public issues during the year.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.