Blackstone-backed Sona BLW Precision Forgings gets SEBI nod for IPO; plans to raise Rs 6,000 crore

By means of the IPO, Blackstone Group will lower its stake within the firm which at the moment stands at 66.28%.
(Picture: Sona Comstar)

Auto part maker Sona BLW Precision Forgings (Sona Comstar) has acquired capital market regulator SEBI’s (Securities and Change Board of India ) nod for its preliminary public providing (IPO). The corporate plans to lift Rs 6,000 crore via the preliminary share sale which can encompass a contemporary difficulty of fairness shares value Rs 300 crore and a suggestion on the market (OFS) by present shareholders. Singapore VII TOPCO III PTE — an affiliate of The Blackstone Group — is without doubt one of the promoters of the corporate. Sona Comstar had filed draft papers for its preliminary share sale with SEBI in February this 12 months.

By means of the IPO, Blackstone Group will lower its stake within the firm which at the moment stands at 66.28%. Sona Comstar intends on utilizing the proceeds from the contemporary difficulty in direction of compensation or pre-payment, in full or half, of sure borrowings availed by the corporate. The supply doc states that Sona Comstar’s IPO could have 75% of the difficulty reserved for Certified Institutional Patrons (QIB), whereas the non-institutional buyers (NII) portion shall be 15% and the remaining 10% shall be reserved for the retail buyers. Kotak Mahindra Capital Firm, Credit score Suisse Securities, JP Morgan India, JM Financial and Nomura Monetary Advisory and Securities are the e book working lead managers (BRLM) of the difficulty.

Sona BLW Precision Forging Restricted is one in every of India’s main automotive expertise firms. The corporate designs, manufactures and provides extremely engineered, mission-critical automotive programs and elements akin to differential assemblies, differential gears, standard and micro-hybrid starter motors, BSG programs, EV traction motors, and motor management models to automotive OEMs throughout the US, Europe, India and China. Among the firm’s OEM prospects embrace Ashok Leyland, CNH, Daimler, Escorts, Escorts Kubota, Geely, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Mahindra Electrical, Maruti Suzuki, Renault Nissan, Revolt Intellicorp, TAFE, Volvo Automobiles and Volvo Eicher.

On the monetary facet, the corporate has seen its income enhance from Rs 77.57 crore within the monetary 12 months 2018 to Rs 360 crore within the monetary 12 months 2020. Within the 9 months ended December 2020, the online revenue of the corporate stood at Rs 155 crore. Sona Comstar will be a part of friends akin to Motherson Sumi and Bosch on the bourse after a profitable itemizing.