GIC, ADIA make anchor investments in Sansera Engineering as IPO opens

 GIC, ADIA make anchor investments in Sansera Engineering as IPO opens

Sovereign wealth funds GIC Pte Ltd and Abu Dhabi Investment Authority (ADIA) have come in as anchor investors in Sansera Engineering Ltd ahead of the automotive and aerospace component maker’s initial public offering.

Sansera raised Rs 382 crore ($51.9 million) by selling about 5.13 million shares at Rs 744 apiece to a bunch of cornerstone investors. Singapore’s GIC invested Rs 48 crore while ADIA put in Rs 32 crore.

Other foreign institutions that invested in Sansera include funds managed by Nomura and BNP Paribas.

Three Indian mutual funds—Axis MF, ICICI Prudential MF and Baroda MF—accounted for almost a fifth of the anchor allotment. Three local insurers—SBI Life Insurance, ICICI Prudential Life and Max Life—pitched in, too.

Sansera’s IPO opens Tuesday and closes Friday. The IPO is a complete secondary market sale of 17.244 million shares by its promoters and private equity firm The Rohatyn Group. It is targeting an asking valuation of around Rs 3,800 crore ($520 million).

The company had earlier attempted an IPO in 2018-19. It had filed its draft proposal in August 2018 and received regulatory nod in November that year. However, it deferred its IPO owing to stock market volatility.

In its second attempt, the company’s IPO size is pegged at Rs 1,280 crore. Sansera will not receive any proceeds from the offer and the money will go into the selling shareholders’ kitty. Rohatyn is about to pocket Rs 1,002 crore from the partial sale of its 53% stake in Sansera.

Sansera was originally incorporated in December 1981. It makes precision components for the automotive and aerospace sectors, primarily supplying original equipment manufacturers in India and international markets.

It counts Yamaha Motors, Bajaj Auto, Honda Motorcycle and Scooter India, and Maruti Suzuki as its key clients. The company had 16 factories at the end of April 2021, including 15 in India. It also has a facility in Sweden.

ICICI Securities, IIFL, and Nomura Financial and Securities (India) are the merchant bankers arranging the IPO.

Also read: How Rohatyn’s planned exit may benefit IPO-bound Indian firm’s promoters

Sumit Upadhyaya

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