Sona BLW Precision Forgings Limited IPO

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Sona Comstar

Subscription Status of Sona Comstar

Subscription Status [no. of times,(x)]
Particulars Shares Offered 14th June 15th June 16th June
QIB 5,84,21,052 0.02 0.14 3.46
NII 2,92,10,526 0.01 0.04 0.39
Retail 1,94,73,684 0.51 1.02 1.55
Total 10,71,05,262 0.11 0.27 2.28

 

Sona Comstar, an auto component manufacturer was incorporated in the year 1995 with its registered office in Haryana. The company is coming up with its IPO on 14th June 2021 with an offer size of Rs 5550 crore. The offer comprises of both a fresh issue and an offer for sale. Further offer details follow:

Offer Details of Sona BLW Precision Forgings Limited IPO

Offer Details
Offer Size Rs 5550 crore
    of which
Fresh Issue Rs 300 crore
Offer for sale Rs 5250 crore
Price Band Rs 285-291 per share
Offer Period June 14 – June 16, 2021
Offer Structure QIBs: upto 75% of the offer
NIIs: upto 15% of the offer
RIIs : upto 10% of the offer
Market Lot Minimum (51 shares) Rs 14,841
Maximum ( shares) Rs 3,73,964
Listing on BSE, NSE
BRLM’s Kotak Investment Banking, Credit Suisse, JM Financial, J.P. Morgan, Nomura
Registrar Kfintech

Objects of the Offer

Fresh issue proceeds of Rs 300 crore would be utilized for

  • Repayment and pre-payment of identified borrowings in full availed by the Company (Rs 241.12 crore)
  • Corporate purposes.

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Business Review of Sona Comstar

The Issuer is an automotive technology company, 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 (BLDC and PMSM), and motor control units to automotive OEMs across US, Europe, India, and China, for both electrified and nonelectrified powertrain segments.

Sona Comstar has nine manufacturing and assembly facilities, of which six are located in India and one each in China, Mexico, and USA, as well as eight warehouses across India, USA, Germany, and Belgium. Income from the sale of goods to the top ten customers accounted for 79.0%, 80.8%, and 79.6%, of total income for FY 19, Fy20 and FY21 respectively.

Some of the key OEM customers include a Global OEM of EVs, a North American OEM of PVs and CVs, Ampere Vehicles, an Indian OEM of PVs, CVs and EVs, Ashok Leyland, CNH, Daimler, Escorts, Escorts Kubota, Geely, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Revolt Intellicorp, TAFE, Volvo Cars and Volvo Eicher.

Key Financials

Financials and Ratios Amount in  INR Crores
FY 21 FY 20 FY 19
Total revenue 1568.64 1043.77 702.5
PAT 215.17 360.34 173.18
EBITDA 443.35 320.90 376.65
Total Assets 2174.83 1850.68 1632.56
EBITDA Margin 20.39% 17.34% 23.07%
Net Margin 9.89% 19.47% 10.61%

Valuation Parameters

Valuation Parameters P/E NAV P/BV EPS
77.39 22.75 12.79 3.76

Important Dates of Sona Comstar IPO

Important dates of Sona Comstar IPO
Basis of allotment June 21, 2021
Refunds June 22, 2021
Credit to Demat account June 23, 2021
Listing date June 24, 2021

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About CA Priyanka Choudhary Jain 99 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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