MUMBAI: The initial public offering (IPO) of Sona BLW Precision Ltd, or Sona Comstar, an automotive component manufacturer, backed by private equity firm Blackstone Group, will open on 14 June. Price band for the issue has been fixed at Rs285-291 per share. The issue will close on 16 June.
The firm will raise Rs5,550 via IPO. It consists f a fresh issue of Rs300 crore and an offer for sale of Rs5,250 by Singapore VII Topco III Pte Ltd, an affiliate of Blackstone. As of December, Singapore VII Topco III Pte held a 66.28% stake in Sona Comstar, while the rest 33.72% was held by Sona Autocomp Holding Pvt. Ltd.
Kotak Mahindra Capital, Credit Suisse, JP Morgan India, JM Financial and Nomura are advising the company on the IPO.
Sona Comstar will use the proceeds from the fresh issue to repay its Rs225 crore debt, besides general corporate purposes.
Sona Comstar designs, manufactures and supplies highly-engineered, mission-critical automotive systems and components to auto original equipment manufacturers (OEMs) across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.
The company has nine manufacturing and assembly units across India, China, Mexico and the US, of which six are in India. In FY20, it posted revenue of Rs1,037.98 crore, up from Rs699.22 crore a year-ago, and net profit of Rs360.34 crore, rising from Rs100.11 crore a year earlier.
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