Sona BLW Precision Forgings, the country’s largest auto parts manufacturing company, is set to launch an IPO to raise Rs 6000 crore from the primary market. This IPO of Sona Comstar will be the largest public issue of any auto component making Indian company.
The company’s IPO has been approved by the market regulator SEBI. For this IPO, the company will issue a fresh share of Rs 300 crore. At the same time, the promoters of the company and the existing investors will issue shares worth Rs 5700 crore through Offer for Sale (OFS). The company had applied to SEBI for an IPO in February 2021. The company may launch an IPO at the end of this month or next month.
According to the DRHP filed with SEBI, 75% of the shares in this IPO will be reserved for qualified institutional buyers (QIPs). At the same time, 15% shares will be reserved for non-institutional investors and 10% shares will be reserved for retail investors.
Let me tell you that the US private equity firm Blackstone has a 66% stake in Sona Comstar. While 34% stake in the company is owned by the chairman of the company, Sunjay Kapur. Let us know that Sona Comstar is the second private investment company of 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.
Let us tell you that Sona Comstar designs, manufactures and supplies automotive systems and components. The company has manufacturing units in China, the US 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.
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