Tuesday, November 5

Mrs. Bector’s Food & Sansera Engineering Get SEBI Nod for IPO

Two companies of two different sectors have received regulatory nods to float initial public offerings (IPOs). Those two companies are biscuit maker Mrs. Bector’s Food Specialties and automotive and aerospace component manufacturer Sansera Engineering.

With this approval, SEBI has agreed upon a total of 65 IPO proposals in 2018. However, last year, it had cleared 46 proposals.

Mrs. Bector’s Food is a Ludhiana based food company and it filed its draft proposal on 13 August. The company counts firms like CX Partners and Gateway Partners as its backers.

The IPO demanded a sale of shares worth Rs 800 crore by promoter Ajay Bector and CX Partners and Gateway Partners. It will result in 26-27% stake dilution, valuing the biscuit maker at Rs 3,000 crore ($428 million).

CX Partners and Gateway Partners have proposed to sell half their stakes in the IPO. After dilution, CX Partners will continue to hold roughly 11.5% stake worth Rs 350-375 crore, VCCircle estimates show.

On the other hand, Sansera Engineering is a company based in Bengaluru that proposed to sell nearly half its stake — or 13.47 million shares in the proposed IPO. The company filed its proposal on 10 August for an IPO.

The IPO entailed a sale of a little over 17.24 million shares, resulting in a stake dilution of 33.5% by both CVCI and individual promoters. The public issue size is estimated at Rs 1,400-1,500 crore ($200-214.3 million).

The company is concerned with the making of precision components for original equipment manufacturers in automotive and aerospace sectors both in India and abroad.