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Sona Comstar receives SEBI nod for ₹6,000 crore IPO

Our Bureau Mumbai | Updated on May 11, 2021

The automotive technology company is into designing, manufacturing and supply of mission-critical automotive systems and components.

PE firm Blackstone-promoted automotive supplier Sona BLW Precision Forgings Ltd has received capital markets regulator’s approval for its ₹6,000-crore initial public offering (IPO).

The public offer comprises a fundraise through the issuance of new shares of up to ₹300 crore and ₹5,700 crore through an offer-for-sale by shareholder Singapore VII Topco III, an affiliate of The Blackstone Group.

 

Kotak Mahindra Capital Company Ltd, Credit Suisse Securities Pvt Ltd, J.P. Morgan India Pvt Ltd, JM Financial Ltd and Nomura Financial Advisory and Securities Pvt Ltd are the book-running lead managers to issue.

Between FY16-20, the company total operating income grow at a compounded annual growth revenue of 10.9 per cent.

The Gurugram-headquartered company is an automotive technology company, into designing, manufacturing and supplying of highly-engineered, mission-critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, among others. The company supplies its products to automotive Original Equipment Manufacturers across the US, Europe, India and China.

The company is also one of the two largest exporters of starter motors from India, besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India. Some of its key OEM customers include Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.

Published on May 11, 2021

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