Sumary of Sansera Engineering IPO: Public offer sees 65% subscription, retail portion fully booked on Day 2:
- The initial public offering (IPO) of Sansera Engineering, a precision components manufacturer across automotive and non-automotive sectors, had been subscribed 65 percent by the morning of September 15, the second day of bidding.
- The portion set aside for retail investors was subscribed 1.10 times and that for employees 42 percent, data shows.
- Qualified institutional buyers had put in bids for 29 percent of their portion and non-institutional investors 8 percent.
- “The IPO is valued at 35x of FY21 earnings, which appears to be at a discount of 17 percent to its peers like Endurance Technologies,” said Reliance Securities, which recommended subscribing to the issue for a long-term perspective.
- Also read: Sansera Engineering IPO | 10 Key things to know before subscribingThe brokerage said operating cash flow yield at 6.7 percent appears to be the best among peers, while consistent cash generation is likely to result in strong dividend payout.
- “While revenue clocked a negative CAGR of 2 percent over FY19-FY21, net profit recorded 6 percent CAGR during the same period.
- Profit growth was majorly supported by a reduction in debt and steady margin,” it said.