Mumbai: Blackstone promoted Sona BLW Precision Forgings Ltd (Sona Comstar) on Wednesday filed a draft red herring prospectus with markets regulator Securities Exchange Board of India to raise up to ₹6000 crore via initial public offering.
The IPO comprises a fund raise via fresh issue amounting to Rs300 crore and an offer for sale aggregating up to Rs5,700 crore by Singapore VII Topco III Pte Ltd, an affiliate of Blackstone.
As of December 2020, Sona Autocomp Holding Pvt Ltd holds 33.72% stake in the company while Singapore VII Topco III Pte holds 66.28% stake in the firm.
Blackstone-owned Sona Comstar’s IPO follows the listing plans of another company of the private equity investor. In January, Aadhar Housing Finance, Blackstone owned mortgage financier, filed its draft papers for a Rs7,300 crore IPOs.
The two IPOs will be amongst the biggest to hit the Indian primary markets this year.
Sona Comstar will use the proceeds from the fresh issue to repay ₹225 crore of its borrowings besides general corporate purposes.
"We believe that such repayment/ pre-payment will help reduce our outstanding indebtedness, debt servicing costs and enable utilization of our accruals for further investment in our business growth and expansion. Additionally, we believe that the leverage capacity of our Company will improve our ability to raise further resources in the future to fund our potential business development opportunities and plans to grow and expand our business", the company said in its DRHP.
Sona Comstar is involved in designing, manufacturing and supplying highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.
The company has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India and from here it supplies its products to six out of the top 10 global PV OEMs, three out of the top 10 global CV OEMs and seven out of the top eight global tractor OEMs by volume.
For fiscal year 2020, the company posted a revenue of ₹1037.98 crore against ₹699.22 crore a year ago. Net profit for the period stood at ₹360.34 crore versus ₹100.11 crore last year.
Kotak Mahindra Capital, Credit Suisse, JP Morgan India, JM Financial and Nomura are advising the company on the IPO.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.