Sona BLW Forgings Ltd. (Sona Comstar) will sell shares at Rs 285-291 apiece in its initial public offering next week as the Blackstone-backed auto-parts maker looks to pare debt.
The proposed Rs 5,550-crore IPO, opening on June 14, comprises a fresh issue worth Rs 300 crore and Rs 5,250-crore of offer-for-sale by a Blackstone entity, Singapore VII Topco III Pte Ltd., according to its red herring prospectus. The company will use Rs 241 crore from the fresh issue to pare debt. The IPO will close on June 16.
At the upper end of the price band, the company, according to BloombergQuint calculations, is valued at close to Rs 17,000 crore.
The IPO constitutes 32.6% of the post-issue equity capital. Blackstone — co-promoter of the company along with Sunjay Kapur of Sona Group — will sell 30.9% of the post-issue equity.
Blackstone and Sona Autocomp Holding Pvt. will own 33-34% each after the issue, Kapur, chairman and non-executive director at Sona BLW Forgings, told BloombergQuint in an interview.
Sono Comstar has nine manufacturing facilities — six in India and the rest in China, Mexico and the U.S. The company designs, manufactures and supplies electrical and non-electrical powertrain for the automobile sector. It majorly caters to the passenger car segment, while has increased focus on electric vehicles that now constitutes 14% of its revenue.
The company garners 36% of its revenue from North America, 26% from Europe, 25% in India and 7.6% from China. Its top 10 customers contribute 79.6% of the revenue, with the top two clients accounting for 32.3%.
Sono Comstar ended 2020-21 fiscal with pro-forma consolidated income of Rs 1,566.30 crore and net profit of Rs 213.9 crore.
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