Sona BLW Precision Forgings shares list at 3% premium

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Shares of Blackstone-backed Sona BLW Precision Forgings (Sona Comstar) listed at Rs 301 per share on the National Stock Exchange, Rs 10 higher than the issue price of Rs 291 marking a premium of 3%. On the BSE, it opened at Rs 302.40, at a premium of 4%.

The initial public offer of Gurugram-based auto ancillary major Sona BLW Precision Forgings was subscribed 2.28 times on the last day of subscription. The issue received bids for 24,43,02,138 shares against the total issue size of 10,71,05,262 shares on offer, as per NSE data. The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 3.46 times, while those of non-institutional investors was subscribed 39 per cent and that of retail individual investors (RIIs) was subscribed 1.57 times, the data showed.

The Rs 5,500 crore issue of global automotive technology company was launched on June 14, comprising a fresh issue of Rs 300 crore and an offer for sale of Rs 5,250 crore by Singapore VII Topco III Pte. Ltd, an affiliate of The Blackstone Group. The net fresh issue proceeds will be utilised for repaying debt of Rs 241 crore.

Total debt of the company as the end of 31 March 2021 stood at Rs 366.26 crore including a long term loan of Rs 249.748 crore up from Rs 306.782 crore as of the end of March 2020.

On a consolidated basis, the company reported a net profit of Rs 215.17 crore and sales of Rs 1,566.30 crore in the twelve months ended on 31 March 2021.

Sona BLW Precision Forgings (SBPF) is primarily engaged in 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 [Brushless direct current (BLDC) motor and Permanent magnet synchronous motor (PMSM)] and motor control units to automotive original equipment manufacturers (OEMs) across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.