- 16 Oct 2024
- ICICI Securities
SUCCESSFULLY RAISES ~₹ 1,200 CRORE AS EQUITY THROUGH QIP ROUTE
News: In a regulatory filing, Sansera Engineering Limited has informed exchanges about successful completion of its Qualified Institutional Placement (QIP) of equity shares, which opened on October 10, 2024, and closed on October 15, 2024. The board approved the allocation of 77,22,007 equity shares at an issue price of ₹1,554 per share, representing a ~5%% discount to the floor price of ₹1,635. The equity raised in this QIP amounts to ~₹ 1,200 crore (~14% equity dilution). Marquee domestic institutional investors such as SBI MF, Nippon Life India and Aditya Birla Sun Life were the key investors to the QIP issue.
Views: Sansera Engineering has ambitious growth plans (both in auto and non-auto space) and current equity raise might be for its new manufacturing set up in Karnataka wherein in the recent past it had entered into a MoU with State Government of Karnataka for the acquisition of 55 acres of industrial land envisaging an investment of ~₹ 2,100 crore over 3-5 years with revenue potential pegged at ~₹ 3,000 crore. Post the QIP placement the promoter’s stake in the company gets reduced from ~36% to ~31% which in our opinion is a tad low. Over medium to long term we have a positive view on the company.
Impact: Positive