Sona Comstar to raise R`6,000 cr via IPO

New Delhi: Auto component maker Sona BLW Precision Forgings (Sona Comstar) on Wednesday said it has filed papers to raise Rs 6,000 crore via an initial public offering (IPO).

The public issue of shares of the face value of Rs 10 each, comprises a fundraise via fresh issue amounting to Rs 300 crore and an offer for sale aggregating up to Rs 5,700 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc, Sona BLW Precision Forgings said in a statement.

The portion reserved for Qualified Institutional Buyers will be up to 75 per cent of the offer, non-institutional investors to have up to 15 per cent of the portion reserved while up to 10 per cent will be reserved for the retail investors, it added. As stated in the DRHP, the Blackstone promoted company intends to utilise the proceeds from the fresh issue to repay/prepay Rs 225 crore of its borrowings besides general corporate purposes, the Gurugram headquartered company said.

The company is into designing, manufacturing and supplying highly engineered critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units. It supplies components to automotive OEMs across the US, Europe, India and China, for both electrified and non-electrified powertrain segments and is not dependent on a single product, vehicle segment, customer or geography.

The company is also one of the two largest exporters of starter motors from the country besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India. Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicles maker, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher. Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory and Securities are the book running lead managers (BRLM) of the issue.