PremiumMUMBAI: Shares of Sona BLW Precision Ltd, also known as Sona Comstar and backed by private equity firm Blackstone Group, made a tepid debut on bourses on Thursday, listing at a 3.8% premium to the issue price of ₹291 per share. However, soon after the stock surged nearly 25% backed by robust volumes.
On the BSE, at 1049 am, the stock traded at Rs357 apiece, having opened at Rs302. Shares have touched a high of Rs362.85 and a low of Rs295.15 so far today.
Sona Comstar's Rs5,550-crore initial public offer (IPO), open during 14-16 June, was subscribed 2.28 times at a price band of ₹285-291 per share. The company plans to use the proceeds from the issue to repay debt of Rs225 crore and general corporate purposes.
The IPO comprised a fresh issue of Rs300 crore and an offer for sale of ₹5,250 by Singapore VII Topco III Pte Ltd, an affiliate of Blackstone.
Considering the FY21 adjusted EPS of 3.69 on a post issue basis, the company listed at PE of 78.9 times. Its listed peers namely Motherson Sumi and Minda Industries are trade at a PE of 73.7 times and 196.0 times, respectively, analysts said.
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.
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