Sona Comstar IPO: The preliminary public providing (IPO) of Sona BLW Precision Forgings (Sona Comstar) has opened for subscription earlier immediately and will likely be out there for subscription until Wednesday, June 16, 2021. The IPO has a value band of Rs 285-291 per share.
Ahead of its Rs 5,550 crore IPO, Sona Comstar raised Rs 2,497.5 crore from 56 anchor traders in lieu of 8,58,24,742 fairness shares at Rs 291 every, information from the inventory exchanges confirmed.
The anchor traders embrace the likes of Government of Singapore, Monetary Authority of Singapore, SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Nomura India Investment Fund Mother Fund amongst others, the corporate’s round on the BSE confirmed.
Sona BLW Precision Forgings is an auto part maker that’s backed by non-public fairness funding agency Blackstone. It provides parts to automotive authentic gear producers (OEMs) throughout the US, Europe, India and China, for each electrified and non-electrified powertrain segments and isn’t depending on a single product, automobile phase, buyer, or geography.
The Sona Comstar IPO includes a recent situation of shares amounting to Rs 300 crore and a proposal on the market (OFS) aggregating as much as Rs 5,250 crore by promoting shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.
The firm intends to utilise the proceeds from the recent situation to repay/prepay a bit over Rs 241 crore of its borrowings in addition to basic company functions.
A complete of 75 per cent of the problem has been reserved for certified institutional patrons (QIBs), 15 per cent for non-institutional bidders and 10 per cent for retail traders.
Investors who want to subscribe to Sona Comstar IPO can bid within the lot of 51 fairness shares and multiples thereof. At the higher value band, they must shell out Rs 14,841 to get a single lot of Sona BLW Precision Forgings. The shares will likely be listed on each BSE and National Stock Exchange (NSE).
Kotak Mahindra Capital, JP Morgan India, Credit Suisse Securities (India), JM Financial, Nomura Financial Advsiory and Securities (India) are the ebook operating lead managers to the IPO whereas Kfin Technologies is the registrar of the problem.
Many analysis groups of brokerages haven’t rated the problem nevertheless Motilal Oswal Financial Services and ICICI Direct Research of their respective IPO notes have beneficial “Subscribe for long term” to the provide.
“We like SBPFL given its presence in fast growing global EV market, diversified portfolio across categories and robust financials. The issue is valued at 74.1x FY21 P/E on post issue basis. Though the valuation appears fully priced in, given its thrust in fast evolving EV space both in India and globally, market would like to give premium to such emerging growth story. Hence, we recommend Subscribe for Long Term,” the Motilal Oswal report stated.
