The Rs 5,550-crore public issue of Sona BLW Precision Forgings (Sona Comstar) has subscribed 83 percent, so far, on June 16, the last day of bidding.
Investors have put in bids for over 8.85 crore equity shares against the IPO size of more than 10.71 crore equity shares, the subscription data available on the exchanges showed. The offer size excluded anchor book that was fetched Rs 2,498 crore to the company, at a higher end of price band of Rs 285-291 per equity share.
The portion set aside for retail investors has subscribed 1.30 times, while the reserved portion of qualified institutional buyers witnessed subscription of 1.04 times and that of non-institutional investors 9 percent.
The global automotive technology company launched a public issue on June 14, comprising a fresh issue of Rs 300 crore and an offer for sale of Rs 5,250 crore by Singapore VII Topco III Pte. Ltd, an affiliate of The Blackstone Group. The net fresh issue proceeds will be utilised for repaying of debt of Rs 241 crore.
Prabhudas Lilladher recommended subscribing to the issue for the long term given huge addressable market considering strong growth potential of electric vehicles (EV), diversification across geographies and market share gains in key products.
The company is one amongst a limited number of players who are well placed to integrate 3 constituents of electric powertrain (differential assembly, high voltage traction and high voltage inverters) into a single matched unit offering an efficient and compact solution to EV OEMs (original equipment manufacturer), said the brokerage.
However, Sona Comstar's financials have remained largely stable over the past few years, as EBITDA margin declined 70bp over FY19-21 (despite revenue CAGR of around 5 percent), the brokerage added.
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Sona Comstar is one of India's leading automotive technology companies that designs, manufactures and supplies highly engineered, mission-critical automotive components. It is a global supplier of automotive components and derives around 75 percent of its revenue from overseas market.
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