Sona BLW Precision Forgings IPO: Share price band at Rs 285-291 apiece; 3-day public issue opens on 14 June
Automotive component maker Sona BLW Precision Forgings Limited has fixed the price band of its Rs 5,500 crore initial public offering (IPO) at Rs 285-291 apiece. The three-day issue will open on 14 June 2021 (Monday) and close on 16 June 2021 (Wednesday). The bidding for anchor investors will open on 11 June, PTI reported quoting the company
Automotive component maker Sona BLW Precision Forgings Limited has fixed the price band of its Rs 5,500 crore initial public offering (IPO) at Rs 285-291 apiece. The three-day issue will open on 14 June 2021 (Monday) and close on 16 June 2021 (Wednesday). The bidding for anchor investors will open on 11 June, PTI reported quoting the company.
The Rs 5,550-crore IPO comprises fresh issue of shares amounting to Rs 300 crore and an offer for sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc, the report said.
Now, the size of the public issue has been reduced to Rs 5,550 crore from Rs 6,000 crore as it has been decided to offload Rs 5,250 crore shares through OFS against Rs 5,700 crore as planned earlier, the report said.
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- A total of 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional bidders and 10 per cent for retail investors.
- Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory and Securities are the book running lead managers of the issue.
- The Blackstone-promoted company intends to utilise the proceeds from the fresh issue to repay/prepay a little over Rs 241 crore of its borrowings besides general corporate purposes, the PTI report said.
- Sona BLW or Sona Comstar filed preliminary IPO papers in February. It obtained Sebi's go ahead in early May to float the public issue.
Sona BLW is into designing, manufacturing and supplying engineered critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units.
The company supplies components to automotive original equipment manufacturers (OEMs) across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.
Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicles maker, Ashok Leyland, Daimler, Escorts, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.
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