Sansera Eng shares surge to 52-wk high on plans to raise ₹1,200 cr

Sansera Engineering shares climbed 2% to a 52-week high of ₹1,528.75 on the NSE today after its board of directors approved raising over ₹1,200 crore via qualified institutional placement (QIP) or other routes, including public or debt issues, preferential allotments, or private placements. The company will raise the fund in one or more tranches.

Boosted by fundraising plan, the shares opened higher at ₹1,525 and hit an intraday high of ₹1,528.75. At the time of reporting, the stock was trading at ₹1,487, down 0.64% from the previous close. In contrast, the benchmark NSE Nifty total market index was up 0.27%.

The board approved an additional ₹20 crore investment in MMRFIC Technology through compulsorily convertible preference shares (CCPS), to be completed by the end of this fiscal year. MMRFIC is a research, product development, and manufacturing entity of Sansera that builds subsystems and systems for next-generation radars using machine learning and artificial intelligence. The company also launched a new R&D facility in Bangalore in June earlier this year, focusing on semiconductor packaging, precision PCB assembly, and product testing.

Additionally, the company plans to increase its authorised share capital from ₹23 crore to ₹30.5 crore. This will involve expanding the equity shares from 6.25 crore shares to 10 crore shares, while the preference shares (Series A and Series B) will remain the same at 3 lakh and 7.5 lakh shares, respectively. The change in share capital will also require an update to Clause V of the Memorandum of Association, pending shareholder approval at the upcoming AGM scheduled for September 26, 2024.

The company specialises in manufacturing auto components and equipment such as rocker arms, connecting rods, gear shifters, crankshafts, and aerospace parts. Its consolidated net profit in the first quarter of FY25 increased by 11% to ₹50.1 crore, compared to ₹45.17 crore in the same period last year. This was supported by a 13% rise in revenue to ₹743.93 crore from ₹660.07 crore.