Auto component maker Sansera Engineering gets Sebi’s go ahead to launch IPO

Auto component maker Sansera Engineering Ltd has received capital markets regulator Sebi’s go-ahead to float an initial share sale.

The initial public offer (IPO) is entirely an offer for sale (OFS) of 17,244,328 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

Those offering shares in the OFS are existing investors– Client Ebene, CVCIGP II Employees Ebene, and promoters — S Sekhar Vasan, Unni Rajagopal K, F R Singhvi, and D Devaraj.

The auto component maker, which filed preliminary IPO papers with in June, obtained a “final observation” letter from the regulator on August 6, an update with the capital markets watchdog showed on Monday.

In market parlance, observation of is a kind of its go-ahead to float the public issue.

Going by the draft papers, the company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to shareholders. Also, the listing will provide a public market for the equity shares in the country.

This is the company’s second attempt to go public. Earlier, Sansera Engineering had filed IPO papers with in August 2018 and had also received its clearance to float the public issue. However, it did not go ahead with the launch.

The Bengaluru-based firm is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automative sectors.

Within the automotive sector, the company manufacture and supply a wide range of precision forged and machined components and assemblies that are critical for engine, transmission, braking, and other systems for the two-wheeler, passenger vehicle, and commercial vehicle verticals.

In the non-automotive sector, Sansera Engineering manufacture and supply precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods.

ICICI Securities, IIFL Securities, and Nomura Financial Advisory and Securities (India) Private Limited are the merchant bankers to the public issue.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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