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The initial public offer (IPO) of auto component maker Sansera Engineering, that opened for subscription on Tuesday, September 14, was fully subscribed on the second day of the bidding process. The initial share sale will conclude on September 16 and the price range for the offer is fixed at 734-744 per share.

On the final day, Sansera Engineering IPO has been subscribed 7.04 times, as of 3 pm. The category for qualified institutional buyers (QIBs) has been subscribed 18.64 times while non-institutional investors 1.84 times and retail individual investors 2.08 times, BSE data showed.

As per market observers, Sansera Engineering grey market premium (GMP) today has slipped to 10. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.

The public issue is entirely an offer for sale (OFS) of 17,244,328 equity shares by promoters and existing shareholders. At the upper end of the price band, the initial share sale is expected to garner 1,283 crore. Sansera Engineering Ltd has mopped up 382 crore from anchor investors. 

"Sansera has strong credentials like the long-standing relationship of over 20-30 years with the likes of HMSI, Bajaj, and Maruti.. Focus on non-auto has also aided volume growth for the company. We believe that a rebound in auto production volumes in India as well as Globally along with steady wallet share gains and would support volume growth going ahead. We have a Subscribe rating on the Sansera IPO," said Milan Desai, Lead Equity Analyst, Angel Broking.

Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automative sectors. The firm is one of the leading manufacturers of connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers as well as passenger vehicles. The company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to shareholders.

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