Sona Comstar

IPO Listing Details

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IPO Details

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IPO Doc

(D)RHP PDF  

(D)RHP PDF

About IPO

The Rs 5,550 crore IPO of Blackstone Group-backed Sona BLW Precision Forgings (Sona Comstar) opened for subscription from June 14-16, 2021, in the price band of Rs 285-291 per share. The Sona Comstar IPO comprised a fresh issue of shares of Rs 300 crore along with an offer for sale (OFS) totalling up to Rs 5,250 crore by selling a stake of shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group.



Sona BLW Precision Forgings (Sona Comstar) is an auto component manufacturer that supplies components to automotive original equipment manufacturers (OEMs) across the US, Europe, India and China. The auto ancillary company designs, manufactures, and supplies highly engineered critical automotive systems and components. These include differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units, the components of which are used for both electrified and non-electrified powertrain segments.

IPO Latest News and Subscription Status Today (Live)

The Sona Comstar IPO was subscribed 2.28 times as of June 16. Qualified institutional buyers (QIBs) subscribed 3.46 times to the issue while the retail individual investors (RIIs) was subscribed 1.61 times. The non-institutional investor quota remained undersubscribed at 40 per cent.


Why should you invest in IPO?

Sona Comstar stands apart from much of the rest of the auto component universe with a strong play on electrification. The Sona Comstar IPO is valued at around 74x P/E on FY21 basis. The company offers a good investment case on the back of strong growth prospects. In FY21, the company's return on net worth (RONW) stood at 16.5 per cent, which was much better than most of its counterparts in the industry.


SWOT Analysis - IPO

Sona Comstar holds a diverse product portfolio across different areas. It is a leading manufacturer in the automotive sector. The company has focussed on product development and R&D spend in recent years. It is one of the leading manufacturers & suppliers to the global EV market. It has a consistent financial performance track record.

Despite the strengths, there are some key risks and weaknesses for Sona Comstar. Intense competition coupled with moderate global market shares in various product segments remains a key area to watch out for. Almost 75 per cent of the company's revenue comes from outside India, making it prone to foreign exchange risk.

But the company is aiming for superior growth by targeting the global EV market, which is expected to grow by 36 per cent between 2020 to 2025.


Competitive Analysis - IPO

Both Sona Comstar and Shyam Metallics have strong fundamentals and can give decent returns to investors in the next few years. While a favourable metal cycle bodes well for Shyam Metallics, Sona Comstar could be a wealth creator in the short-to-medium term, given the company's proven track record.



How to apply for IPO?

You can apply for the IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

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Frequently Asked Questions (FAQs) - IPO

When can we expect the Sona Comstar IPO allotment?

The Sona Comstar IPO allotment status will be available on Jun 21, 2021, as per the timeline provided in the draft red-herring prospectus.

When is Sona Comstar IPO getting listed?

The Sona Comstar IPO shares will get listed on June 24, 2021. The equity share of Sona BLW Precision Forgings Limited will list on BSE, NSE.

What is the expected listing price of the Sona Comstar IPO?

The expected listing price of Sona Comstar IPO is dependent on a number of factors which include demand for the IPO, nature of the business, market fundamentals and the state of the economy.

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