Auto component maker Sona BLW Precision Forgings (Sona Comstar) IPO is all set to open on June 14 and the subscription will close on June 16. The price of the IPO will beRs 285-291 per share and expected to raise for Rs 5,550 crore.
The bidding for anchor investors will open on June 11, according to the company.
The IPO comprises fresh issue of shares amounting to Rs 300 crore and an offer for sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.
Now, the size of the public issue has been reduced to Rs 5,550 crore from Rs 6,000 crore as it has been decided to offloaded Rs 5,250 crore shares through OFS against Rs 5,700 crore as planned earlier.
The company will be utilising the proceeds from the fresh issue to repay/prepay a little over Rs 241 crore of its borrowings besides general corporate purposes.
About this company:
- In 1995, the Company was incorporated as Sona Okegawa Precision Forgings Ltd, a JV with Mitsubishi Metal Corporation Limited and Sona Group.
- The Sona Group, after acquiring Thyssen Krupp’s forging business (which acquired BLW, the inventor of warm forging) and 25 per cent stake of Mitsubishi, renamed the company to Sona BLW Precision Forgings, which became the largest manufacturer of forged gears.
- In 2019, Sona BLW acquired Comstar Automotive, a leading designer and manufacturer of starting and charging systems for automobiles, and created a new identity.
- The company is into designing, manufacturing and supplying highly engineered critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units.
- It supplies components to automotive original equipment manufacturers (OEMs) across the US, Europe, India and China.
- The company is also one of the two largest exporters of starter motors from the country besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India.
- Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicles maker, Ashok Leyland, Daimler, Escorts, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.
- The company reported a profit after tax of Rs 215.1 crore, Rs 360.3 crore and Rs 172.9 crore for FY 2021, FY 2020 and FY 2019 respectively, as restated consolidated financial.
- As per red herring prospectus, the total operating income has grown at a CAGR of 10.9 per cent from fiscal 2016 to 2020 as compared to the average CAGR of 8.1 per cent for the top ten listed auto-component manufacturers in India by market capitalisation, in the same period, according to the CRISIL Report.
