Sansera Engineering’s Rs 1,283 initial public offering (IPO) opened was subscribed 0.83 times so far on the second of its issue today, according to subscription data on the stock exchanges. The portion reserved for retail individual investors (RII) is subscribed 1.44 times so far – the highest among the three groups of investors today. The segment reserved for qualified institutional buyers (QIB) is subscribed 0.29 times so far, while the portion set aside for non-institutional investors is subscribed 0.0 times till now.
The public offer of the leading auto component maker opened for investors on Monday, September 14 and will close on September 16 – remaining open for subscription for a period of three days.
The shares are being sold in the price band of Rs 734-744 per share.
Objectives of the offer
The 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 each and in multiples of 20 shares after. The minimum amount that retail investors need to invest is Rs 14,880 per lot and the maximum is Rs 1,93,440 for 13 lots. Retail investors can to invest up to Rs 2 lakh in the issue.
What analysts say
”At the higher end of the price band, Sansera Engineering is reasonably priced at a P/E ratio 35.4 times FY21 EPS (on a post-issue basis). This is lower as compared to larger peers such as Motherson Sumi (80 times), Minda Industries (104 times), and Endurance technologies (44 times).
Given factors such as steady growth in topline and bottomline, stable margins, good return ratios, improving debt ratios, and reasonable valuations, we remain positive on the long-term prospects of this issue,” SEBI-registered investment advisor INDmoney said in a report.