About the Company:
Sansera Engineering Ltd is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive
sectors.
Within the automotive sector, company manufactures and supplies a range of precision forged and machined components and assemblies.
Within the non-automotive sector, company manufactures and supplies a range of precision components for the aerospace, off-road, agriculture and other segments,
including engineering and capital goods.
Company supplies most of the products directly to OEMs in finished (forged and machined) condition, resulting in significant value addition.
For Fiscal 2021, company derived 88.45%, and 11.55% of the revenue from sale of products from the automotive sector and nonautomotive sectors, respectively.
Company is a global supplier and derived 64.98% of the revenue from sale of products from India and 35.02% revenue from sale of products from Europe, USA and other
foreign countries combined.
Company’s History.
Company was incorporated on December 15, 1981 and commenced commercial production of passenger vehicle components in 1986 for Maruti Suzuki (formerly known as Maruti Udyog Limited).
And then grew by commencing supplies to the two-wheeler vertical in 1996, to the off-road vehicle vertical in 2009 and to the light commercial vehicle vertical in 2011.
Company set up a manufacturing facility dedicated to high precision aluminium and titanium machined aerospace components in 2013.
In 2017, company acquired a 100% stake in Sansera Sweden, which established company’s presence in the heavy commercial vehicle vertical.
Further, company set up aluminium forging lines in Fiscal 2020 in order to cater to the growing opportunities in the light weighting of vehicles.
Global suppliers of connecting rods:
Company is one of the top 10 global suppliers of connecting rods within the light vehicle segment and one of the top 10 global suppliers of connecting rods within the commercial vehicle (“CV”) segment for CY 2020.
Company has been gaining market share in connecting rods in terms of production volume (units) for
- Light Vehicles with a global market share of 2.3% in CY 2020 compared to a global market share of 0.9% in CY 2015.
- CVs with a global market share of 3.0% in CY 2020 compared to a global market share of 0.9% in CY 2015.
Company’s Customers:
Within India, company’s customers include nine out of the top 10 two-wheeler OEMs and the leading passenger vehicle OEM based on production volume for Fiscal 2021.
Globally, company’s customers include six out of top 10 global Light Vehicle OEMs and three of the top 10 global MHCV OEMs based on production volumes for CY 2020.
In the two-wheeler vertical, company has relationships spanning over 20 years with Honda Motorcycle and Scooter India Ltd, 25 fiscal years with Bajaj and over 20 years with Yamaha, the second, third and fifth largest two-wheeler Indian OEMs in terms of domestic production volume for Fiscal 2021, respectively.
In the passenger vehicle vertical, company has relationships spanning more than 30 years with Maruti Suzuki, the leading Indian passenger vehicle OEM in terms of domestic production volume for Fiscal 2021 and over 10 years with one of the leading North American passenger vehicle.
Geography wise Revenue breakup:
Company’s Manufacturing Facilities:
As of July 31, 2021, company had 16 manufacturing facilities, of which 15 are in India in the states of Karnataka (Bengaluru, Bidadi, Tumkur), Haryana (Manesar), Maharashtra (Chakan), Uttarakhand (Pantnagar) and Gujarat (Mehsana), and one facility is in Trollhättan, Sweden.
Competitors/ Key players in the Business:
Management Team:
- Mr. Subramonia Sekhar Vasan (Designation: Chairman and Managing Director)
- Mr. Fatheraj Singhvi (Designation: Joint Managing Director)
Objectives of the Issue:
Offer for Sale (OFS): Rs. 1283 cr
- Company will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders.
Positives for the Company:
Leading Manufacturers of connecting rods.
- Within India, Sansera Engineering is one of the leading manufacturers of connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and connecting rods and rocker arms for passenger vehicles.
- Specifically, company is the largest supplier of connecting rods, rocker arms and gear shifter forks to two-wheeler OEMs in India and the largest supplier of connecting rods and rocker arms to passenger vehicle OEMs in India.
Technology-driven company with a focus on design, engineering, machine building and automation capabilities.
- Sansera Engineering is a technology-driven company with a focus on design, engineering, machine building and automation capabilities.
- These capabilities enable company to roll out new products in a timely manner and develop higher strength components required for highend performance and graduate from manufacturing individual parts to the designing and manufacturing of sub-assemblies, thereby moving up the value chain.
Strong engineering capabilities, evolved over decades.
- Sansera Engineering’s engineering capabilities, evolved over decades, have enabled company to consistently offer quality, complex, precision components and assemblies, allowing company to diversify business beyond the automotive sector into various other sectors, including aerospace, off-road and agriculture.
- Company also have an active pipeline of products under development, including components for the defence sector and the bicycle segment.
High entry barriers due to stringent quality requirements.
- Owing to the critical applications of company’s products and stringent quality requirements, company believes, it is difficult for new players to become qualified or replace Sansera Engineering in supplying the precision components.
- This is corroborated by company’s status as a single source supplier in certain product categories for some of the key customers and by company’s long-standing relationships with several well-known Indian and global OEMs.
Increase in the no. of Customers.
- Company was supplier to 71 customers during Fiscal 2021 as compared to 64 during Fiscal 2019, which helped to decrease company’s reliance on top customer, Bajaj.
- For Fiscals 2021, 2020 and 2019, company’s top customer, Bajaj, contributed 20.75%, 22.08% and 22.71% of revenues from sale of products, respectively.
Company’s Expansion by entering into hybrid and electric components, aerospace and defence segments.
Company is now in the process of setting up a dedicated facility for hybrid and electric components at one of company’s plants in Bangalore and expect this facility to be commissioned during Fiscal 2022.
Company also plan to construct a greenfield manufacturing facility in Bangalore dedicated to aerospace and defence and expect this facility to be commissioned during Fiscal 2023.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 1640.8 | 1473.1 | 1572.3 |
| Net Profit | 98.0 | 79.9 | 109.8 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 14th September 2021 |
| Issue Closes on:. | 16th September 2021 |
| Issue Price | Rs.734 – 744 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35% |
| Minimum Lot | 20 shares |
| Minimum Investment | Rs.14,880 |
| Issue Constitutes | 33.56% |
| Issue Size | Rs.1283 cr ($173 million) |
| Market Cap | Rs.3822 cr ($ 516 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,72,44,328 |
| Equity Shares Prior to the Issue | 5,13,77,850 |
| Equity Shares after the Issue | 5,13,77,850 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 21st September 2021 |
| Initiation of Refunds | On or Before 22nd September 2021 |
| Credit of Equity Shares: | On or Before 23rd September 2021 |
| Listing Date: | On or Before 24th September 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 34,23,442 | 0.29 | 0.38 | 26.47 |
| NII | 25,67,582 | 0.07 | 0.22 | 11.37 |
| Retail | 59,91,024 | 0.87 | 1.72 | 3.15 |
| Employee | 1,27,118 | 0.36 | 1.03 | 1.37 |
| TOTAL | 1,21,09,166 | 0.53 | 1.02 | 11.47 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 20.55 | 36.20 | 12.31% | 166.96 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Sansera Engineering Limited Plant 7, Plot No. 143/A Jigani Link Road Bommasandra Industrial Area Anekal Taluk, Bengaluru 560 105 Karnataka, India Tel: +91 80 2783 9081/ 9082/ 9083 E-mail: rajesh.modi@sansera.in Website: www.sansera.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: 022 4918 6200 E-mail: sansera.ipo@linkintime.co.in Website: www.linkintime.co.in |
