Shares of auto component maker Sansera Engineering made a strong debut on the bourses. The shares of the company got listed at Rs 811.50 on the National Stock Exchange (NSE) on Friday, at a premium of 9.07 percent or Rs 67.50 to its issue price. The shares were listed at Rs 811.35 on the Bombay Stock Exchange (BSE), at a premium of 9.05 percent or Rs 67.35.

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The company had set the issue price at Rs 744, the upper end of the price range of Rs 734-744. The Rs 1,200 crore IPO was subscribed 11.47 times. It received bids for 13.88 crore shares against 1.21 crore shares on the offer. In an interview to CNBC-TV18, BR Preetham, Group CEO, elaborated on the company's plans post listing.

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On utilisation levels, Preetham said, “We have been very consistent in outperforming the industry, and we hope to continue to do the same in the future as well. As far as the guidance is concerned, I told you that our full potential with last year’s closing capex, we could do at around Rs 2,500 crores. With our strong order book of almost 160 new purchase orders and a few more wins after that, we are very confident that our utilisation will be above 80 percent and we hope to outperform the industry as usual.”

The Bengaluru-based firm is an engineering-led integrated manufacturer of complex and critical precision-engineered components across automotive and non-automotive sectors. Within the automotive sector, the company manufactures 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.

On raw material price increase and its impact on margins, he said, “This raw material, it is a pass-on on the domestic front for us. So for all the customers, it is a direct pass on. So this would not have any impact as such in the absolute margins, though the percentage would get slightly reduced, but then we have done a lot of work on cost by adopting lean manufacturing, reducing inventory, higher efficiency and automation, and all these things with better utilisation, we are definitely hopeful of improving our margin at least by a couple of basis points.”

On promoter dilution, Preetham said, “Promoters have been there since the last 40 years so they have a strong commitment towards the company. I don't think in the short-term they are looking at any dilution. We are looking at strong participation from their side, so we are very hopeful that promoters will continue to support Sansera as they have done for the last 40 years.”

(With text inputs from PTI)

For full management commentary, watch the video.

Also Read: Sansera Engineering shares list at a premium of 9%

(Edited by : Dipika)

First Published:Sept 24, 2021 2:36 PM IST