Auto parts maker Sona BLW Precision Forgings has fixed the price band for its IPO on Wednesday, June 9.
Sona Comstar IPO: Auto parts maker Sona BLW Precision Forgings has fixed the price band for its IPO on Wednesday, June 9. Sona Comster has fixed a price band of Rs 285-291 for the IPO of Rs 5550 crore. This IPO will be open for subscription for three days. According to the information given by the company, the IPO will open for subscription on June 14 and will be open till June 16. Anchor investors will be able to bid for this on June 11.
Under this IPO of Rs 5500 crore, fresh shares worth Rs 300 crore will be issued and shares of Rs 5250 crore will be available under Offer for Sale (OFS). Singapore VII Topco III Pte Ltd, an affiliate of Blackstone Group Inc., will sell its stake under the OFS.
SEBI’s approval was received in May
The fresh issue fund proceeds from the Sona Comstar IPO, a Blackstone-promoted company, will be used for repayment of debt of over Rs 241 crore, apart from general corporate purposes. 75% of the issue is reserved for qualified institutional buyers and 15% for non-institutional bidders. Apart from this, 10 percent of the issue is reserved for retail investors.
Sona Comstar had filed the preliminary IPO papers in February 2021 and was approved for public issue by capital markets regulator SEBI in early May. Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory & Securities are the book running lead managers to the issue.
SEBI’s approval was received in May
The fresh issue fund proceeds from the Sona Comstar IPO, a Blackstone-promoted company, will be used for repayment of debt of over Rs 241 crore, apart from general corporate purposes. 75% of the issue is reserved for qualified institutional buyers and 15% for non-institutional bidders. Apart from this, 10 percent of the issue is reserved for retail investors.
Sona Comstar had filed the preliminary IPO papers in February 2021 and was approved for public issue by capital markets regulator SEBI in early May. Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory & Securities are the book running lead managers to the issue.
Business in many countries around the world
Sona Comstar manufactures high-end critical automotive systems including various assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units. Apart from this, the company also does designing. The company supplies components in both electric and non-electric powertrain segments to Automotive Original Equipment Manufacturers (OEMs) in India, China, USA and Europe. Thus, it is not dependent on any one product, vehicle segment, customer or country for its business.
Sona Comstar is the country’s second largest company in the export of starter motors from the country. However, it is the largest company in the country to manufacture various gears for passenger vehicles, commercial vehicles and tractors. Talking about its major OEM customers, it includes auto companies like Ashok Leyland, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volva Eicher.
