Sona BLW Precision Forgings IPO: Rs 5550 cr! MD and Group CEO Vivek Vikram Singh talks about this public issue, business model and growth outlook in chat with Anil Singhvi
In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Vivek Vikram Singh, Managing Director and Group Chief Executive Officer (CEO) of Sona BLW Precision Forgings Limited. The company has launched its Initial Public Offering (IPO) on Monday. Singh speaks about the ongoing IPO and much more (#NewsParViews)
In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Vivek Vikram Singh, Managing Director and Group Chief Executive Officer (CEO) of Sona BLW Precision Forgings Limited. The company has launched its Initial Public Offering (IPO) on Monday. Singh speaks about the ongoing IPO and much more (#NewsParViews).
Singh said that the company intends to raise Rs 5550 cr through this public issue. Out of this, Offer For Sale (OFS) comprises shares worth Rs 5250 cr. He said that private equity firm Blackstone is one of the investors in the company and it will be exiting the company. Other investors will continue to hold their stakes, he further said.
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He said that the primary issue will be worth Rs 300 cr. Out of this Rs 241 cr will be utilised to repay the term loan of the company, he said. The remaining money will be used for general corporate purpose.
The MD said that the USP of the company was that Sona BLW was an auto technology company apart from being an auto component supplier. The company puts electric vehicles segment at the top of its priority list, he said.
He said that 14 per cent of company’s sales is accounted for battery electric and 27 per cent goes to hybrid and micro hybrid segments. The growth of the company has also been good and it posted a 28 per cent year-on-year (y-o-y) growth in FY21.
There were some temporary setbacks in Q1 and Q2 because of the pandemic, but the growth in Q3 was 65 per cent y-o-y while in Q4 it was 75 per cent, he added.
He said that electric vehicles have been the biggest disruptors in the automobile sector and the growth is expected to pick up in India as well. He said that Sona BLW is aligned to this growth.
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NEWS पर VIEWS
IPO के जरिए ब्लैकस्टोन अपनी हिस्सेदारी बेचेगी... कंपनी का इलेक्ट्रिक व्हीकल पर खास फोकस : विवेक विक्रम सिंह, MD & ग्रुप CEO, सोना BLW प्रेसिजन #NewsParViews #SonaBLW #IPO @AnilSinghvi_ pic.twitter.com/DfnN8QBJgb
— Zee Business (@ZeeBusiness) June 14, 2021
On share valuations:
The MD said that the comparison in valuations should not be made with domestic auto ancillary companies. The company was delivering auto technology services and has a global play and therefore valuations should be compared with its global peers, he further said. He said that 75 per cent of company’s sales cater to offshore markets.
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