Sansera Engineering IPO subscribed 11.47 times last day

At the end of the last day of the three-day offering, the IPO attracted bids for over 138.84 million shares compared to an issue size – excluding the anchor book – of 12.11 million shares. at the upper end of ₹734-744 price band for the issue, IPO bids for approx. ₹10328.99 crores.

The institutional investor category was subscribed 26.47 times to receive bids for 90.62 million shares. The non-institutional category with high net worth individuals was subscribed 11.37 times.

Demand from retail investors, whose investments cannot be high ₹Exchange data showed that 2 lakh in the IPO was 3.15 times of the 18.86 million shares on offer.

The IPO is valued at 35 times FY21 earnings, which appears to be at a 17% discount to its peers like Endurance Technologies. Notably, the working capital cycle, which stood at 79 days in FY21 and stable cash flows over the years, provides comfort, Reliance Securities said in its report.

Further, the asset turnover ratio is 1.15 times in FY21, indicating that SEL can sustain high growth with potential improvement in automobile volumes in subsequent years. Additionally, the OCF yield at 6.7% appears to be the best among peers, providing an edge, while consistent cash generation is likely to result in strong dividend payouts, said the Reliance Securities report.

The Bengaluru-based firm is an engineering-led integrated manufacturer of complex and critical precision engineered components in the automotive and non-automotive sectors.

The firm is one of the leading manufacturers of Connecting Rods, Crankshafts, Rocker Arms and Gear Shifter Forks for two wheelers as well as passenger vehicles.

As of April 2021, the firm had 16 manufacturing facilities, 15 of which are in the states of Karnataka (Bengaluru, Bidadi, Tumkur), Haryana (Manesar), Maharashtra (Chakan), Uttarakhand (Pantnagar) and Gujarat (Mehsana) in India. , and a facility is in Trollhattan, Sweden.