New Delhi: Auto component maker Sona BLW Precision Forgings (Sona Comstar) is set to launch its initial public offer (IPO) on June 14 for INR 5,550 crore. Sona Comstar has fixed the price band for the issue at INR 285 to INR 291 per share, the company said in a media release.
The bid/offer period for the initial public offering of equity shares will open on Monday, June 14, 2021 and close on Wednesday, June 16, 2021, Sona Comstar said.
The total offer size is up to INR 5,550 crore with a fresh issuance of equity shares, aggregating up to INR 300 crore and an offer for sale of equity shares aggregating up to INR 5,250 crore, by the selling shareholder, namely, Singapore VII Topco III Pte. Ltd.
It intends to utilize the proceeds from the fresh issue to repay/prepay approximately INR 241.12 crore of its identified borrowings, besides general corporate purposes, the company said.
Sona Comstar, which filed preliminary IPO papers in February, is a leading supplier to the fast-growing global electric vehicle (EV) markets and derived 13.8% revenue from the Battery EV market and 26.7% from the Micro Hybrid / Hybrid market in FY21. Its global market share of Battery EV (BEV) differential assemblies in calendar year 2020 was 8.7%.
The company claims to be among the top ten players globally in the differential bevel gear market and in the starter motor market on the basis of respective volumes supplied to its end segments in calendar year 2020.
According to the Ricardo Report, it serves six of the top 10 global passenger vehicle OEMs, three out of top 10 global CV OEMs and seven out of top eight global tractor OEMs by volume. The company has nine plants spread across India, China, Mexico, and the USA. The company is one of India’s leading automotive technology companies, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs globally.
According to the Crisil Report, Sona Comstar has the highest operating EBITDA margin, PAT margin, ROCE and ROE in FY20 as compared to top 10 listed auto component manufacturers in India by market capitalization and has consistently delivered more than 26% EBITDA margin and more than 35% average ROE each year over FY19-21. Its operating income growth over FY16-20 has exceeded the average of the same peer set.
This will be the largest IPO by any auto component firm in India so far, the company said.