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Auto Components Major - Sona Comstar ₹ 5,550 Crore IPO to open on June 14, 2021, close on June 16, 2021

Price Band of Rs. 285– Rs. 291 per equity share of face value of Rs.10 each

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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 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. 291per Equity Share. The Company and the Selling Shareholder have, in consultation with the book running lead managers to the Offer, 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. 

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 book running lead managers to the Offer.

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 the calendar year 2020 was 8.7%. According to the Crisil report, the company has the highest operating EBITDA margin, PAT margin, ROCE, and ROE in FY20 as compared to the 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. 

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