Sona BLW Precision Forgings IPO: Rs 5,550 crore! Price band, lot size, opening/closing date, and other initial public offering details for investors

Automotive component maker Sona BLW Precision Forgings or Sona Comstar has launched its initial public offering (IPO) on Monday, June 14. The issue will continue for three days and will close on Wednesday, June 16, 2021. Take a look at the price band, size of the IPO, company’s business, promoters, and other details. 

The company has fixed the price band of its IPO at Rs 285-291 per equity share. The size of the IPO is Rs 5,550 crore. The company has registered EBITDA of Rs 441 crore in the fiscal year 2020-21, against Rs 242 crore in the last fiscal year.

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Sona BLW Precision Forgings is an automotive technology company. It is involved 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 (BLDC and PMSM). The company's motor control units to automotive OEMs are across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.   

Sona BLW Precision Forgings has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India. It is mainly a technology and innovation-driven company. With a strong focus on research and development, it develops mechanical and electrical hardware systems, components as well as base and application software solutions, to meet the evolving demands of its customers.  

The Rs 5,550-crore IPO comprises a fresh issue of shares amounting to Rs 300 crore and an offer for sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III, an affiliate of the Blackstone Group, the company has mentioned in its Red Herring Documents filed with ROC.  

Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicles maker, Ashok Leyland, Daimler, Escorts, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.  

Promoters 

The promoters include Sunjay Kapur, Sona Autocomp Holding, and Singapore VII Topco III.