In today’s second issue, Sansera Engineering opened an initial public offering (IPO) of Rs 1,283, as per the subscription data of stock exchanges. The share reserved for retail individual investors (RIIs) has been subscribed 1.44 times so far – the highest among the three groups of investors today. The segment reserved for Qualified Institutional Buyers (QIBs) is subscribed 0.29 times so far, while the segment earmarked for non-institutional investors is subscribed 0.0 times so far.
The major auto component maker’s public offering will open to investors on Monday, September 14 and close on September 16 – open for subscription for a period of three days.
Shares are selling in the price band of Rs 734-744 per share.
Objectives of the offer
A public issue is an offer for sale, so the proceeds of the IPO, excluding issue expenses, will go to the selling shareholders.
Investors can bid for a minimum of 20 shares and thereafter in multiples of 20 shares. The minimum amount for retail investors to invest is Rs 14,880 per lot and maximum amount is Rs 1,93,440 for 13 lots. Retail investors can invest up to Rs 2 lakh in the issue.
what analysts say
“At the high end of the price band, Sansera Engineering has a reasonable P/E ratio of 35.4 times (on a post-issue basis) FY21 EPS. This is lower than larger peers like Motherson Sumi (80x), Minda Industries (104x), and Endurance Technologies (44x).
Considering factors such as steady growth in topline and bottomline, stable margins, good return ratio, improving debt ratio and fair valuations, we remain positive on the long-term prospects of the issue,” said SEBI-registered investment advisor INDmoney. said in the report.