Sona Comstar set to launch ₹5,500-crore IPO on 15 Jun
Premium- The IPO will open for subscription on Monday, 15 June, while the anchor allotment will happen on Friday
American private equity giant Blackstone backed auto component maker Sona BLW Precision Forgings Ltd (Sona Comstar) is gearing up to launch its Rs5,550 crore initial public offering (IPO) in the coming week, said a person aware of the company’s listing plans.
The company had filed the draft red herring prospectus for its IPO in February.
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“They have got the RoC approval today. The IPO will open for subscription on Monday, 15 June, while the anchor allotment will happen on Friday," said the person cited above, requesting anonymity as he is not authorised to speak with the media.
A Blackstone entity called Singapore VII Topco III Pte. Ltd currently holds a 66.28% stake in the company, while Sona Autocomp Holding Pvt Ltd holds the rest, as per the DRHP filed by the company.
The major chunk of the IPO will be an offer for sale of existing shares by Blackstone, with the company also raising a small amount of capital to invest in its business.
Kotak Mahindra Capital, Credit Suisse, JP Morgan India, JM Financial and Nomura are advising the company on the IPO.
This the second major IPO of a portfolio company of Blackstone this year.
In January, mortgage financier Aadhar Housing Finance, which is also backed by Blackstone, had filed its draft papers for a ₹7,300-crore IPO.
The two will be among the biggest IPOs to hit the Indian markets this year.
Sona Comstar will use the proceeds from the fresh issue to repay debt.
Sona Comstar designs, manufactures and supplies highly- engineered, mission-critical automotive systems and components to auto original equipment manufacturers (OEMs) across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.
The company has nine manufacturing and assembly units across India, China, Mexico and the US, of which six are in India. In FY20, it posted revenue of ₹1,037.98 crore, up from ₹699.22 crore a year-ago, and net profit of ₹360.34 crore, rising from ₹100.11 crore a year earlier, according to its DRHP.
Mint reported on Tuesday that India’s initial public offering market, which stalled in May after the debut of tough new guidelines for merchant bankers and other intermediaries, is likely to gather steam again with the Securities and Exchange Board of India (Sebi) delaying the implementation of some of the provisions.
After these relaxations, at least a dozen firms have begun advancing IPO plans and a few IPOs should be launched in the second half of June, Mint reported. Kolkata-based Shyam Metalics & Energy Ltd, which makes long steel products, has announced its plans for an IPO next week.
An email sent to Blackstone did not elicit a response.
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