Sona Comstar IPO subscribed 2.28 times


2 min read


Auto component maker Sona BLW Precision Forgings’ initial public offer was subscribed 2.28 times on the last day of subscription on Wednesday.

The initial public offer (IPO) received bids for 24,43,02,138 shares against 10,71,05,262 shares on offer, according to an update on the NSE.

The portion meant for Qualified Institutional Buyers(QIBs) was subscribed 3.46 times, non-institutional investors 39 per cent, and retail individual investors (RIIs) 1.57 times.

The initial public offer of up to Rs 5,550 crore comprised a fresh issue of up to Rs 300 crore and an offer for sale of up to Rs 5,250 crore.

The price range for the offer, whose subscription started on Monday, was fixed at Rs 285-291 per share. Sona BLW Precision Forgings (Sona Comstar) garnered Rs 2,498 crore from anchor investors.

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 company is into designing, manufacturing, and supplying highly 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.

It supplies components to automotive OEMs (original equipment manufacturer) across the US, Europe, India, and China, for both electrified and non-electrified powertrain segments and is not dependent on a single product, vehicle segment, customer, or geography.

Sona Comstar, which filed preliminary IPO papers in February, obtained Sebi’s go-ahead in early May to float the public issue.

Kotak Mahindra Capital Company, JP Morgan India, Credit Suisse Securities, JM Financial, Nomura Financial Advisory, and Securities were the managers to the offer. PTI SUM SHW SHW