Sona Comstar sets price band of Rs. 285-291/share

New Delhi: Auto component maker Sona BLW Precision Forgings (Sona Comstar) on Wednesday fixed a price band of Rs 285-291 a share for its Rs 5,550 crore initial public offer (IPO). The three-day IPO will open on June 14 and conclude on June 16.

The bidding for anchor investors will open on June 11, according to the company. The Rs 5,550-crore IPO comprises fresh issue of shares amounting to Rs 300 crore and an offer for sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc. Now, the size of the public issue has been reduced to Rs 5,550 crore from Rs 6,000 crore as it has been decided to offloaded Rs 5,250 crore shares through OFS against Rs 5,700 crore as planned earlier.

The Blackstone-promoted company intends to utilise the proceeds from the fresh issue to repay/prepay a little over Rs 241 crore of its borrowings besides general corporate purposes. A total of 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional bidders and 10 per cent for retail investors.