Auto element maker Sona BLW Precision Forgings (Sona Comstar) has received capital marketplace regulator SEBI’s (Securities and Exchange Board of India ) nod for its initial public providing (IPO). The enterprise plans to raise Rs 6,000 crore via the initial share sale which will consist of a fresh situation of equity shares worth Rs 300 crore and an give for sale (OFS) by current shareholders. Singapore VII TOPCO III PTE — an affiliate of The Blackstone Group — is one of the promoters of the enterprise. Sona Comstar had filed draft papers for its initial share sale with SEBI in February this year.
Through the IPO, Blackstone Group will reduce its stake in the enterprise which at present stands at 66.28%. Sona Comstar intends on making use of the proceeds from the fresh situation towards repayment or pre-payment, in complete or element, of specific borrowings availed by the enterprise. The give document states that Sona Comstar’s IPO will have 75% of the situation reserved for Qualified Institutional Buyers (QIB), though the non-institutional investors (NII) portion will be 15% and the remaining 10% will be reserved for the retail investors. Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory and Securities are the book operating lead managers (BRLM) of the situation.
Sona BLW Precision Forging Limited is one of India’s major automotive technologies organizations. The enterprise styles, manufactures and supplies hugely engineered, mission-essential automotive systems and elements such as differential assemblies, differential gears, standard and micro-hybrid starter motors, BSG systems, EV traction motors, and motor handle units to automotive OEMs across the US, Europe, India and China. Some of the company’s OEM clients consist of Ashok Leyland, CNH, Daimler, Escorts, Escorts Kubota, Geely, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Revolt Intellicorp, TAFE, Volvo Cars and Volvo Eicher.
On the economic side, the enterprise has seen its earnings boost from Rs 77.57 crore in the economic year 2018 to Rs 360 crore in the economic year 2020. In the nine months ended December 2020, the net profit of the enterprise stood at Rs 155 crore. Sona Comstar will join peers such as Motherson Sumi and Bosch on the bourse just after a prosperous listing.