Sansera Engineering, an integrated manufacturer of complex and high-quality precision components for automotive and non-automotive sectors, will raise around Rs 1,283 crore through an initial public offering (IPO). The price band is fixed at Rs 734-744 per equity share.
The auto-component maker’s IPO will open on 14 September and close on 16 September. The IPO is entirely an offer for sale (OFS) of 17.24 million shares by its existing shareholders and promoters. The OFS comprises share sale by Client Ebene Ltd, CVCIGP II Employees EBENE, S Sekhar Vasan, Unni Rajagopal K, FR Singhvi and D Devaraj.
For the fiscal year 2021, the company reported a total income of Rs 157.23 crore compared to Rs 147.31 crore a year ago. The net profit for fiscal 2021, 2020 and 2019 was at Rs 109.86 crore, Rs 79.91 crore and Rs 98 crore respectively.
In the case of net debt of the firm, it reduced from Rs 563.76 crore in fiscal 2019 to Rs 484.60 crore in fiscal 2021. Vikas Goel, Chief Financial Officer, Sansera Engineering said that the company has been able to reduce its debt over the last few years. Over the preceding two fiscal years, the company has been able to increase its profits and reduce its borrowings, stated the firm.
The component maker manufactures connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and passenger vehicles. “50 per cent of the revenue of the company in the last two years came from the two-wheelers segment,” added B R Preetham, Chief Executive Officer, Sansera Engineering. The firm reported 24 per cent growth coming from passenger vehicles.
The company has 16 manufacturing facilities -- 15 are in India in Karnataka (Bengaluru, Bidadi, Tumkur), Haryana (Manesar), Maharashtra (Chakan), Uttarakhand (Pantnagar) and Gujarat (Mehsana). The company has one facility in Trollhättan, Sweden.
Goel said the company is in the process of setting up a dedicated facility for hybrid and electric components at one of their plants in Bangalore. The company expects this facility to be commissioned during fiscal 2022. In addition, the firm also plans to construct a greenfield manufacturing facility in Bangalore dedicated to aerospace and defence. This facility is expected to be commissioned during fiscal 2023.
The company has 35 customers in the auto sector and 21 customers in the non-automative sector. As of FY 2019, 2020 and 2021, the company’s customers base stands at 64, 68 and 71 customers respectively. For fiscals 2021, 2020 and 2019, 64.98 per cent, 69.38 per cent and 69 per cent of the revenue from the sale of products, respectively, was from customers in India.
