Sona Comstar IPO: Preparing to bring largest IPO in auto component segment, company to raise Rs 6000 crore

Sona Comstar IPO: Auto parts maker Sona Comstar has submitted IPO application to market regulator Sebi. The company plans to raise Rs 6000 crore from the IPO. If the company manages to get an IPO, it will be the largest IPO in the auto component segment. Sona Comstar is funded by US private equity company Blackstone.

A 66% stake in Sona Comstar is owned by the American private equity firm Blackstone. While 34% stake in the company is owned by the chairman of the company, Sunjay Kapur. How many shares will be floated for this IPO and what will be its issue price is yet to be decided.

Sona Comstar is the second company to invest in American private equity giant Blackstone, which is coming out with an IPO this year. Earlier Blairstone-backed NBFC Aadhar Housing Finance submitted a draft Red Herring Prospectus (DRHP) to market regulator sebi in January 2021 to raise Rs 7300 crore through an IPO. Sona Comstar has appointed Credit Suisse, Nomura, JP Morgan, JM Financial and Kotak Mahindra Capital as its lead managers for this IPO.

Special things about the company

Blackstone acquired a minority stake in Comstar in the year 2018 for Rs 1000 crore. Then a year later in 2019, the American equity firm launched Sona Comstar by purchasing 33% stake in Sunjay Kapur’s company Sona BLW and merging it with auto parts maker Comstar.

Sona Comstar designs, manufactures and supplies automotive systems and components. The company has manufacturing units in China, USA and Mexico along with India. The company sells its products to countries around the world, including the US and Europe. The company has a total of 9 manufacturing and assembly units, including 6 in India and one unit each in China, USA and Mexico.