Global Automotive Supplier Sona Comstar IPO to open on June 14, 2021, closes on June 16, 2021

Price Band of Rs. 285 – Rs. 291 per equity share of face value of Rs. 10 each (“Equity Shares”)
Bid/Offer Opening Date – Monday, June 14, 2021 and Bid/Offer Closing Date – Wednesday, June 16, 2021
Minimum Bid Lot is 51 equity shares and in multiples of 51 equity shares thereafter
The Floor Price is 28.50 times the face value of the Equity Shares and the Cap Price is 29.10 times the Face Value of the Equity Shares

Risks to Investors : • The five Book Running Lead Managers associated with the Offer have handled 23 public offers in the past three financial years out of which 8 offers closed below the offer price on listing date.• The Price/Earnings ratio based on diluted EPS for Fiscal 2021 for the Company at the upper end of the Price band is as high as 77.60 as compared to the average industry peer group PE ratio of 73.08 (excluding PE ratio of one industry outlier).• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 35.0%.• Average Cost of acquisition of Equity Shares for the Selling Shareholder namely Singapore VII Topco III Pte. Ltd. Is ₹ 32.34 and the Offer Price at the upper end of the Price Band is ₹ 291 per Equity Share.

Bangalore, June 9, 2021: Sona BLW Precision Forgings Limited, one of India’s leading automotive technology companies, is primarily engaged in designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs. The bid/offer period in relation to its initial public offering of Equity Shares (the “Offer”) will open on Monday, June 14, 2021 and close on Wednesday, June 16, 2021. The price band for the Offer has been determined at Rs. 285 – Rs. 291 per Equity Share. The Company and the Selling Shareholder have, in consultation with the book running lead managers to the Offer (the “BRLMs”), considered participation by Anchor Investors, which participation shall be one Working Day prior to the bid/offer opening Date, i.e. Friday, June 11, 2021.

The total Offer size is up to Rs. 5,550 crores with a fresh issuance of equity shares, aggregating up to Rs.300 crores and an offer for sale of equity shares aggregating up to Rs. 5,250 crores, by the Selling Shareholder, namely, Singapore VII Topco III Pte. Ltd. The Company intends to utilize the proceeds from the fresh issue to repay/prepay approximately Rs. 241.12 crores of its identified borrowings, besides general corporate purposes.

The company is a leading supplier to the fast-growing global Electric Vehicle (EV) markets and derived 13.8% revenue from the Battery EV market and 26.7% from the Micro Hybrid / Hybrid market in FY21. Its global market share of BEV differential assemblies in calendar year 2020 was 8.7%. The company is among the top ten players globally in the differential bevel gear market and in the starter motor market on the basis of respective volumes supplied to its end segments in calendar year 2020 and has been gaining global market share across products. According to the Ricardo Report, it serves 6 of the top 10 global PV OEMs, 3 out of top 10 global CV OEMs and 7 out of top 8 global tractor OEMs by volumes. The company has strong R&D, engineering and technological capabilities in precision forging, mechanical and electrical systems, as well as base and application software development. It is diversified across geographies, products, vehicle segments and customers. According to the Crisil Report, the company has the highest operating EBITDA margin, PAT margin, ROCE and ROE in FY20 as compared to top 10 listed auto component manufacturers in India by market capitalization and has consistently delivered more than 26% EBITDA margin and more than 35% average ROE each year over FY19-21. Its operating income growth over FY16-20 has exceeded the average of the same peer set.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made in accordance with Regulation 6(2) of the SEBI ICDR Regulations, through the Book Building Process wherein not less than 75% of the Offer shall be available for allocation to qualified institutional buyers, not more than 15% of the Offer shall be available for allocation to non-institutional bidders and not more than 10% of the Offer shall be available for allocation to retail individual bidders.

Kotak Mahindra Capital Company Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited are the BRLMs to the Offer.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated June 7, 2021 (“RHP”) filed with the Registrar of Companies, NCT of Delhi and Haryana at New Delhi (“RoC”).
Disclaimers
SONA BLW PRECISION FORGINGS LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its Equity Shares and has filed the RHP with the RoC and thereafter with Securities and Exchange Board of India (“SEBI”) and the Stock Exchanges. The RHP shall be available on the website of the SEBI at http://www.sebi.gov.in as well as on the websites of the book running lead managers, Kotak Mahindra Capital Company Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited at http://www.investmentbank.kotak.com, http://www.credit-suisse.com/in/en/investment-banking-apac/investment-banking-inindia/ipo.html, http://www.jmfl.com, http://www.jpmipl.com and http://www.nomuraholdings.com/company/group/asia/india/index.html, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” beginning on page 26 of the RHP. The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and, unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with the applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to “qualified institutional buyers” (as defined in Rule 144Aunder the U.S. Securities Act) in transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and (b) outside the United States in offshore transactions as defined in and in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering in the United States.

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