Auto parts maker Sansera files draft prospectus for IPO valued at $200 million

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The IPO is a pure offer for sale that will see existing shareholders sell 17.24 million shares, with Rohatyn Group looking to sell over 13 million shares. Photo: Mint

The IPO is a pure offer for sale that will see existing shareholders sell 17.24 million shares, with Rohatyn Group looking to sell over 13 million shares. Photo: Mint

Mumbai: Auto parts maker Sansera Engineering Ltd on Monday filed the draft red herring prospectus for its initial public offering (IPO), joining a long list of companies headed for stock markets. The IPO size is expected to be around ₹1,400-₹1,500 crore, a person aware of the company’s plans said on condition of anonymity. Mint had reported in June that Bengaluru-based Sansera had hired investment banks to start work on its IPO. The company is backed by US-based private investment group Rohatyn Group.

The IPO is a pure offer for sale that will see existing shareholders sell 17.24 million shares, with Rohatyn Group looking to sell over 13 million shares. The PE firm currently holds a 55.23% stake in the company. This stake was originally acquired by Citi Venture Capital International (CVCI), the emerging markets private equity arm of US bank Citigroup, for ₹340 crore ($56 million) in July 2013. In December 2013, Rohatyn Group acquired the CVCI business from Citigroup. Post the IPO, its stake will come down to 29%.

Investment banks ICICI Securities, Nomura, Credit Suisse and IIFL Holdings are advising Sansera on the share sale.

Sansera manufactures and supplies a wide range of precision forged and machined components for engine, transmission and other systems for two-wheelers, passenger vehicles and light and heavy commercial vehicles. It also supplies components to the aerospace sector and for off-road vehicles as well as for other segments including tractors, generator sets, stationary engines and other non-automotive applications.

As of 31 May, Sansera had 15 manufacturing facilities, with 14 of these facilities situated in India in locations such as Bengaluru, Manesar, Pune, Pantnagar and Tumkur. Sansera has one manufacturing facility in Trollhattan, Sweden.

In 2017-18, the company reported a revenue of ₹1,184.4 crore, against ₹1,045.5 crore the previous year. During the period, the company recorded a profit of ₹99.7 crore, against a profit of ₹64.4 crore in the previous financial year. Sansera joins firms such as Dodla Dairy Ltd and Nihilent Ltd that have filed their draft IPO prospectus in the last one week.

Dodla Dairy is an integrated dairy company based in south India with operations across Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. The company also has international operations in Uganda and Kenya.

Dodla Dairy is looking to raise ₹150 crore in primary capital through its IPO, to be used for repayment of debt. Dodla Dairy is backed by TPG Growth managed Rise Fund, an impact investment fund.

Nihilent is a global business consulting and IT solutions integration company. The IPO of Nihilent comprises a fresh issue of ₹250 crore and an offer for sale.

The firm proposes to utilize the IPO proceeds for funding inorganic growth, replacement and upgradation of its corporate office, relocating its branch office and setting up a testing centre in Chennai and setting up a user experience laboratory and a media laboratory. Other firms that have filed their draft IPO documents this month include ASK Investment Managers Ltd and Shyam Metalics and Energy Ltd.

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