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Blackstone-backed Sona BLW Rs 5,550-crore IPO opens June 14; firm announces price band

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Blackstone, sona comstar, Sona BLW Precision Forgings, IPOBlackstone-backed Sona BLW Precision Forgings (Sona Comstar) fairness shares are proposed to be listed on BSE and NSE.
(Picture: Sona Comstar)

Sona BLW Precision Forgings’ (Sona Comstar) Rs 5,550-crore preliminary public providing (IPO) will open for subscription on June 14, 2021, at a worth band of Rs 285-291 per share. Blackstone-backed Sona BLW challenge will shut on June 16, 2021. Auto part maker public challenge contains contemporary challenge of fairness shares of as much as Rs 300 crore and offer-for-sale (OFS) of as much as 5,250 crore by promoting shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc. The bidding for anchor traders will open on Friday, June 11, 2021.

The portion reserved for Certified Institutional Consumers (QIBs) can be as much as 75 per cent of the supply (Rs 4,162.50 crore), non-institutional traders to have as much as 15 per cent of the portion reserved (Rs 833.50 crore) whereas as much as 10 per cent can be reserved for the retail traders (Rs 555 crore). The IPO on the higher worth band of Rs 291 seems to be totally priced, stated Abhay Doshi, Founder,, dealing in Pre-IPO & Unlisted Shares. The corporate operates in a aggressive trade. “It could be attention-grabbing to observe how the corporate performs in EV Section going forward,” Doshi informed Monetary Specific On-line.

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“On the monetary entrance primarily based on annualised FY21 EPS the PE comes round 80x whereas the P/BV comes round 12.93x which makes the difficulty expensive. Subsequently, in my private opinion, it could be prudent to observe the efficiency in upcoming quarters earlier than taking any selections,” Abhay Doshi added.

The guide working lead managers to challenge are Kotak Mahindra Capital, Credit score Suisse Securities, JM Financial JP Morgan and Nomura Monetary. The registrar to Sona BLW IPO is KFin Applied sciences Pvt Ltd. The fairness shares are proposed to be listed on BSE and NSE. Upon profitable itemizing, the corporate will be a part of the likes of Motherson Sumi Systems, Sundaram Calyton, Bosch Ltd, Bharat Forge, Mahindra CIE Automotive, Endurance Technologies, Minda Industries, Sundaram Fasteners, WABCO Ltd. The common trade P/E ratio stands at 4,150.66x. The corporate has deliberate to utilise the online proceeds from the difficulty in direction of the compensation/pre-payment of sure borrowings value Rs 2,250 crore availed by the corporate and for common company functions.

Sona Comstar can be one of many two largest exporters of starter motors from the nation in addition to being the biggest producer of differential gears for passenger automobiles, business automobiles and tractors in India. A few of its key OEM clients embody a world OEM of EVs, a North American passenger automobile and business automobiles maker, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electrical, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.

(The inventory suggestions on this story are by the respective analysis analysts and brokerage companies. Monetary Specific On-line doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and laws. Please seek the advice of your funding advisor earlier than investing.)

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