10 things to know about the Sansera Engineering Limited IPO
The Company derives 64.98% of total revenue from sale of products from India and 35.02% of total revenue from the sale of products from Europe, the USA and other foreign countries combined.
Below are the 10 things to know about the Sansera Engineering Limited IPO are as follow:
1. The company through Initial Public Offering plans to raise funds through an “Offer for Sale” of up to 17,244,328 equity shares (face value of Rs2 each) by Selling Shareholders.
• ICICI Securities Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the issue.
2. Within India, the company is amongst the leading manufacturers of (i) connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and (ii) connecting rods and rocker arms for passenger vehicles.
• Specifically, within two-wheelers, the company is the largest supplier of connecting rods, rocker arms and gear shifter forks in India.
• Within passenger vehicles, the company is the largest supplier of connecting rods and rocker arms in India. (Source: the CRISIL Report, pages 191, 194, 198 and 201).
3. The Company is one of the top 10 global suppliers of connecting rods within the light vehicle segment (passenger vehicles with a gross vehicle weight of 3.5 tonnes or less, “Light Vehicle”) and within the commercial vehicle (“CV”) segment, Company is one of the top 10 global suppliers of connecting rods for CY 2020. (Source: the Ricardo Report, pages 42 and 43).
4. Product Mix: The Company derives 88.45%, and 11.55% of total revenue from the sale of products from the automotive sector and non-automotive sectors, respectively for fiscal 2021.
5. Geographical Mix: The Company derives 64.98% of total revenue from the sale of products from India and 35.02% of total revenue from the sale of products from Europe, the USA and other foreign countries combined.
6. Gaining Market Share: The Company has been gaining market share (in terms of production volume (units) in connecting rods - (i) 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 and (ii) CVs with a global market share of 3.0% in CY 2020 compared to a global market share of 0.9% in CY 2015. (Source: the Ricardo Report, pages 32 and 33).
7. The company’s diversified customer base includes nine of the top 10 two-wheeler OEMs and the leading passenger vehicle OEM based on production volume for Fiscal 2021 in India
• Globally its 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. (Sources: the CRISIL Report, pages 25 and 50; the Ricardo Report, pages 5 and 17).
• The Company has reduced its Net Debt from Rs563.76cr in fiscal 2019 to Rs484.61cr in fiscal 2021.
8. Entering Hybrid EV segment: The Company has recently secured business for multiple drive train components, specifically for hybrid EVs, from a leading global passenger vehicle OEM. It expects to commence supplies of these components in fiscal 2023.
9. Growing Opportunities in vehicle electrification: The Company intends to develop multiple technology driven systems and components to cater to growing opportunities in electrification of vehicles. It is in the process of setting up a dedicated facility for hybrid and electric components in Plant 2 and expect this facility to be commissioned during fiscal 2022.
10. The company also has an active pipeline of products under development, including components for the defence sector and the bicycle segment.
1. The company through Initial Public Offering plans to raise funds through an “Offer for Sale” of up to 17,244,328 equity shares (face value of Rs2 each) by Selling Shareholders.
• ICICI Securities Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the issue.
2. Within India, the company is amongst the leading manufacturers of (i) connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and (ii) connecting rods and rocker arms for passenger vehicles.
• Specifically, within two-wheelers, the company is the largest supplier of connecting rods, rocker arms and gear shifter forks in India.
• Within passenger vehicles, the company is the largest supplier of connecting rods and rocker arms in India. (Source: the CRISIL Report, pages 191, 194, 198 and 201).
3. The Company is one of the top 10 global suppliers of connecting rods within the light vehicle segment (passenger vehicles with a gross vehicle weight of 3.5 tonnes or less, “Light Vehicle”) and within the commercial vehicle (“CV”) segment, Company is one of the top 10 global suppliers of connecting rods for CY 2020. (Source: the Ricardo Report, pages 42 and 43).
4. Product Mix: The Company derives 88.45%, and 11.55% of total revenue from the sale of products from the automotive sector and non-automotive sectors, respectively for fiscal 2021.
5. Geographical Mix: The Company derives 64.98% of total revenue from the sale of products from India and 35.02% of total revenue from the sale of products from Europe, the USA and other foreign countries combined.
6. Gaining Market Share: The Company has been gaining market share (in terms of production volume (units) in connecting rods - (i) 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 and (ii) CVs with a global market share of 3.0% in CY 2020 compared to a global market share of 0.9% in CY 2015. (Source: the Ricardo Report, pages 32 and 33).
7. The company’s diversified customer base includes nine of the top 10 two-wheeler OEMs and the leading passenger vehicle OEM based on production volume for Fiscal 2021 in India
• Globally its 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. (Sources: the CRISIL Report, pages 25 and 50; the Ricardo Report, pages 5 and 17).
• The Company has reduced its Net Debt from Rs563.76cr in fiscal 2019 to Rs484.61cr in fiscal 2021.
8. Entering Hybrid EV segment: The Company has recently secured business for multiple drive train components, specifically for hybrid EVs, from a leading global passenger vehicle OEM. It expects to commence supplies of these components in fiscal 2023.
9. Growing Opportunities in vehicle electrification: The Company intends to develop multiple technology driven systems and components to cater to growing opportunities in electrification of vehicles. It is in the process of setting up a dedicated facility for hybrid and electric components in Plant 2 and expect this facility to be commissioned during fiscal 2022.
10. The company also has an active pipeline of products under development, including components for the defence sector and the bicycle segment.
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