About Sansera Engineering IPO

Incorporated in 1981, Sansera Engineering has been a leading name in India's automotive component manufacturing business. Over the course of 4 decades, the company has built a reputation for curating precision components across multiple segments.

In the automotive sector, Sansera Engineering manufactures and supplies a range of precision forged and machined elements. This includes rocker arm, gear shifter fork, crankshaft, connecting rod, stem comp, etc. Additionally, the company also produces aluminium forged parts crucial for chassis, engine, transmission, braking, and suspension, along with other systems for two-wheelers, passenger, and commercial vehicles production.

In the non-automotive sector, Sansera Engineering produces and delivers precision components for sectors like agriculture, aerospace, off-road, etc.

The company has 15 manufacturing facilities around India and one in Sweden. These facilities are state of the art and comprise specialist labs and dedicated inspection units to ensure the quality of the products.

Sansera Engineering IPO Objectives

- Avail the benefits of listing on stock exchanges.
- Carrying out the offer for sale by current stakeholders.

Sansera Engineering IPO - Details

The Bengaluru-based automotive and non-automotive component manufacturer Sansera Engineering is going public on 14 September 2021. The issue size of this public offering is Rs. 1282.98 crores, comprising only OFS of 17,244,328 equity shares from its current stakeholders.

Opening Date

Sep 14, 2021

Closing Date

Sep 16, 2021

Price Band

₹734 to ₹744

per equity share

Issue Size

₹1265 - ₹1283 Cr

Face Value

₹ 2

per equity share

Market Lot

20 Shares

Opening Date

Sep 14, 2021

Closing Date

Sep 16, 2021

Price Band

₹734 to ₹744

per equity share

Issue Size

₹1265 - ₹1283 Cr

Face Value

₹ 2

per equity share

Market Lot

20 Shares

Listing at NSE, BSE

Sansera Engineering IPO Important Dates

IPO Open Date 14 September 2021
IPO Close Date 16 September 2021
Basis Of Allotment Date 21 September 2021
Initiation Of Refunds 22 September 2021
Credit Of Shares To
Demat ACcount
23 September 2021
IPO Listing Date 24 September 2021

Why Should You Invest in Sansera Engineering IPO?

As a precision component manufacturer, Sansera Engineering has been at the forefront of this segment for quite some time. In the past 3 decades, the company has strengthened its market position further. Here are some reasons to invest in Sansera Engineering IPO –

1. Sansera Engineering has a strong financial base. Indian market is its primary source of revenue, but it also earns substantially from its overseas operations.
2. The company has registered profit in the past three financial years.
3. The total assets of Sansera Engineering have also increased steadily over the past three fiscal years.
4. Apart from India, the company has operations overseas and shares a strong relationship with OEM’s globally.
5. The diverse product portfolio does not limit its business opportunities, and with a strong R&D team backing it, Sansera Engineering is expanding its portfolio.

Financial Highlights

Financial Year Total Assets Total Revenue Total Expenses Profit After Tax
March FY2021 Rs. 19,288.83 Rs. 15,723.64 Rs. 14,262.19 Rs. 1,098.60
March FY2020 Rs. 18,282.36 Rs. 14,731.39 Rs. 13,844.63 Rs. 799.05
March FY2019 Rs. 17,454.84 Rs. 16,408.09 Rs. 14,623.68 Rs. 980.64
**Note: Amount is in millions

How to apply for Sansera Engineering IPO?

You can apply for the Sansera Engineering IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Sansera Engineering IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Sansera Engineering IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Sansera Engineering IPO – Noteworthy Highlights

Sansera Engineering began its journey 40 years ago and has successfully positioned itself as a market leader in its business vertical. The company has, over the years, introduced new technologies to provide world-class equipment to its clients. Here are some highlights of Sansera Engineering that one should be aware of before investing –

1. Sansera Engineering is one of the largest suppliers of connecting rods, and its operations span across automotive and non-automotive segments.

2. The automotive sector contributes about 88% to its revenue, and the remaining is from the non-automotive sector.

3. Indian operations of Sansera Engineering contribute to 65% of its total revenue, and the rest 35%, is derived from its overseas business.

4. The company has 15 manufacturing units across India and 1 unit in Sweden.

5. The company has recently ventured into manufacturing precision components for the aerospace industry.

Sansera Engineering IPO - SWOT Analysis

strengths

Strengths

  • Diverse product portfolio: Sansera Engineering has an extensive product portfolio catering to the automotive and non-automotive sectors.
  • Global presence: The company has a manufacturing unit in Sweden, and a fair share of its revenue comes from abroad.
  • Research and development: Sansera Engineering has a strong R&D team under its disposal, which is beneficial in its further development.
Weaknesses

Weaknesses

  • Lack of actual data: The market segment that Sansera Engineering operates in often lacks adequate data backed by statistics. It can result in a mismatch between projected and final consumption. This can consequently lead to an underutilisation of its production capacity and a rise in overhead costs.
Opportunities

Opportunities

  • Part of a growing industry: Sansera Engineering is operating in a sector that is touted to grow in the coming years. India's automobile sales figures only embody this fact.
  • Entry into the aerospace sector: Entry into the aerospace segment holds immense opportunity for the company, as India’s aerospace industry is on the rise.
Threats

Threats

  • Not enough trained workforce: Precision equipment manufacturing requires a highly skilled workforce, which is not always easily available in India.
  • Volatility of the automobile sector: The constant ups and downs of the automobile sector pose a significant threat to Sansera Engineering's business prospects as the company needs to adapt constantly.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Diverse product portfolio: Sansera Engineering has an extensive product portfolio catering to the automotive and non-automotive sectors.
  • Global presence: The company has a manufacturing unit in Sweden, and a fair share of its revenue comes from abroad.
  • Research and development: Sansera Engineering has a strong R&D team under its disposal, which is beneficial in its further development.

Weaknesses 

  • Lack of actual data: The market segment that Sansera Engineering operates in often lacks adequate data backed by statistics. It can result in a mismatch between projected and final consumption. This can consequently lead to an underutilisation of its production capacity and a rise in overhead costs.

Opportunities 

  • Part of a growing industry: Sansera Engineering is operating in a sector that is touted to grow in the coming years. India's automobile sales figures only embody this fact.
  • Entry into the aerospace sector: Entry into the aerospace segment holds immense opportunity for the company, as India’s aerospace industry is on the rise.

Threats 

  • Not enough trained workforce: Precision equipment manufacturing requires a highly skilled workforce, which is not always easily available in India.
  • Volatility of the automobile sector: The constant ups and downs of the automobile sector pose a significant threat to Sansera Engineering's business prospects as the company needs to adapt constantly.

Competitive Analysis: Market Peers

Here is an overview of how Sansera Engineering’s listed market peers are performing on 8 September 2021 –

Competitor Face value Sector P/E Market Cap. Dividend yield
Endurance Technologies Ltd 10 37.29 Rs. 22,454 0.38
Sundram Fasteners Limited 1 58.44 Rs. 18,428 0.54
Bharat Forge Ltd 2 113.51 Rs. 35,850 0.26
Suprajit Engineering Ltd 1 33.30 Rs. 4,337 0.56
Mahindra CIE Automotive Ltd 10 113.51 Rs. 8,333 NA
Motherson Sumi Systems Limited 1 128.75 Rs. 66,490 0.71
Minda Industries Ltd 2 128.75 Rs. 19,826 0.12
** Note: Market capitalisation is mentioned in crores

Sansera Engineering IPO FAQs

How to find my UPI ID in Angel One App?

To locate your UPI ID, visit the ‘profile’ section of any UPI app. Click here to learn more about this procedure in detail and the process to access it in different apps.

How to apply for the IPO of Sansera Engineering via Angel One App?

To apply for an IPO using the Angel One App, you can follow the steps mentioned below –
Step 1: Visit the ‘investment opportunities’ section on Angel One mobile application
Step 2: Go to the ‘IPOs and FPOs’ option and provide the needed information
Step 3: Provide your NPCI approved UPI handle
Step 4: Click on the ‘invest’ option and place your bid for Sansera Engineering IPO

What is a cut-off price? Can I bid at this price?

The cut-off price denotes a price point at which Sansera Engineering shares will be listed on the exchange. This cut-off price is decided during the allotment stage, and if you place your bid at this price, it signifies that you are prepared to bid at this specific price. Moreover, you can bid at this price to better your chances of securing an allotment.

I cannot find my UPI handle in dropdown menu of Angel One app when applying for an IPO, what is the reason?

In case you cannot find your UPI ID/handle in the dropdown menu of Angel One App, it indicates that NPCI does not approve the ID you are presently using. In that case, you can generate a UPI ID with any of the entities present in the NPCI list.

How much time do I have to approve my UPI mandate request?

It is important to accept a UPI mandate request as soon as you get it. Nonetheless, this window of approval remains open from the closing bell of a public issue to 12 pm on the next working day.

How to approve a Sansera Engineering IPO mandate request?

You can approve the UPI mandate request of Sansera Engineering's public issue via any UPI app. To know more about the steps involved and how this process works, click here.

How quickly can I receive the UPI mandate request after placing an order for Sansera Engineering IPO?

Generally, it takes 15 to 20 minutes to receive a mandate request against your UPI after placing a bid for any public offering. Nonetheless, in some cases, there can be delays owing to different reasons.

How to get Sansera Engineering IPO allotment without fail?

There is no way to guarantee an IPO share allocation, irrespective of the public offering you are applying for. In case of an oversubscription, which is a common circumstance, shares are allocated via a lottery system. A point to note here is that the Angel One platform only permits you to apply for a public issue and does not promise any allotment. Nevertheless, you can increase your chances of approval by following some tips –
  • Use a Demat account linked with your PAN
  • Apply at the cut-off price
  • Confirm that your bank account and UPI ID are linked through a single PAN, and failing to keep that can lead to rejection. For instance, person X has applied for the Sansera Engineering IPO via his Demat Account but person Y’s UPI ID. In such cases, the application can get rejected if –
  • Person X’s Demat account is not linked with Y’s bank account
  • Person Y’s UPI ID is not linked with X’s PAN
  • I have approved the IPO mandate request; however, its status on the Angel One app is still displaying pending?

    Update of UPI mandate request on the Angel One App does not display real time updates. Nevertheless, if you have approved the UPI mandate request, it will display the same in the order book of a public issue after some time.

    To apply for an IPO, can I use a bank account which is not linked with the Angel One app?

    Yes, you can apply for Sansera Engineering IPO using a bank account, which isn’t linked with the Angel One App. However, the account should be in your name.

    I cannot apply for Sansera Engineering IPO via any UPI ID/handle, what is the reason?

    You can only use UPI handles approved by NPCI to apply for Sansera Engineering IPO or any other public issue. But, if you are not able to apply for this public offering using your current UPI ID, you can check the list of banks or apps that have NPCI’s approval to provide UPI service to apply for this public issue from Sansera Engineering.

    Is it possible to apply for this Sansera Engineering IPO using a current account?

    No, it is not possible to apply for Sansera Engineering IPO using a current account. Banks do not process any IPO applications made through current accounts. Hence, it is better to apply for the same using a savings account. You can contact your bank for additional information.

    How to create a UPI ID?

    To generate a UPI ID by using the BHIM app, you can follow the below-mentioned steps –
    Step 1: Download the BHIM UPI app on your mobile phone
    Step 2: Verify the mobile number and register the PIN or password required to open this app
    Step 3: Choose a bank from the list of NPCI approved banks
    Step 4: This app will then fetch your bank account information automatically
    Step 5: If you have multiple bank accounts, choose the one you want to register and link with the BHIM app
    Step 6: Set up a personal UPI ID for security purposes
    You can check your UPI ID later in the ‘Profile’ section of this app.

    Is it possible to apply for the Sansera Engineering IPO using my minor daughter’s account?

    No, you cannot apply for the Sansera Engineering IPO or any other public issue using your minor daughter’s account. The Angel One App does not have such provisions where you can use your minor daughter’s account to place a bid for any public offering. On the other hand, a minor can apply using the ASBA process through a bank.

    I have bid for the Sansera Engineering IPO but the funds are not debited, what is the reason?

    Banks will not debit any funds when you submit an application for the Sansera Engineering IPO or any other public offering. They will only block or freeze the due amount. After you secure the allotment, these funds will be released. However, if you do not receive the allotment or your UPI mandate request expires, these funds will be released.

    Is it possible to apply for Sansera Engineering IPO via my Hindu Undivided Family account? 

    No, you cannot apply for Sansera Engineering IPO or any public issue using your Hindu Undivided Family account through Angel One platform. However, you can use this HUF account through the ASBA process via your bank for this purpose.

    What are the possible reasons for the rejection of my Sansera Engineering IPO application?

    Your Sansera Engineering IPO application can be rejected due to the following reasons –
    Entering an incorrect UPI PIN or ID while approving the mandate
    Failing to confirm that your UPI ID, bank account, and Demat account are linked with the same PAN
    For instance, you use your Demat account to apply for this public issue and use your friend’s UPI ID for payment. In that case, your application can get rejected due to –
    If your friend’s UPI ID and your PAN are not linked
    If your friend’s bank account is not linked with your Demat account

    What is the projected time needed to block or unblock the required funds for an IPO subscription?

    Once you approve the UPI mandate request, your funds for an initial public offering will get blocked. However, these funds will be released if you do not secure shares in an IPO allotment or if the UPI mandate expires. In case your funds are not unblocked even after these scenarios mentioned previously, contact your bank for clarification.

    Can I apply for the Sansera Engineering IPO without a UPI ID?

    In case you do not have a UPI ID, you can generate one without any delays by using any UPI handle cited in the NPCI list. If not, you can take the assistance of the ASBA process through your bank account or use a physical form to apply for this Sansera Engineering IPO.

    Is it possible to alter my bid for the Sansera Engineering IPO following the final application?

    Yes, it is possible to change the UPI ID and lot size of Sansera Engineering IPO even after placing the bid. However, keep in mind that it will be regarded as a new bid if you approve the UPI mandate request and then modify your application. Hence, banks will block the required amount besides the actual bid. Moreover, you will also receive a fresh UPI mandate request for this new bid.

    Can I apply for more than one bid for this public issue of Sansera Engineering?

    No, it is not possible to submit more than one bid for Sansera Engineering IPO against one PAN number, as per the current regulations. The reason being, if you apply via different platforms using the same PAN, you will not get approval against your IPO application, thus, you will fail to get an allotment for this public issue.

    Can NRIs apply for the Sansera Engineering IPO using Angel One App?

    No, NRIs cannot apply for this Sansera Engineering IPO via the Angel One App. But, they can use the ASBA (Application Supported By Blocked Amount) process through their respective banks.

    What are the charges needed for the Sansera Engineering IPO?

    If you apply for Sansera Engineering IPO using the Angel One platform, it will not entail any extra charges.

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