Sona BLW Precision Forgings Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Sona Comstar IPO

Sona Comstar IPO: Key Details

  • Grey Market Premium (GMP) today: ₹ ₹0 – ₹25

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Sona Comstar, incorporated in 2002, is one of India’s leading automotive technology companies, 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) and motor control units to automotive OEMs across US, Europe, India, and China, for both electrified and nonelectrified powertrain segments.

According to the Ricardo Report, in the calendar year 2020, they have been gaining global market share across products to reach a share of approximately 5.0% for differential bevel gears, 3.0% for starter motors, and 8.7% for BEV differential assemblies, in the calendar year 2020.

They have 9 manufacturing and assembly facilities across India, China, Mexico, and USA, of which 6are located in India, from where they supply to the top 10 global PV OEMs, global CV OEMs and global tractor OEMs.

Competitive Strengths

  • One of the leading manufacturers and suppliers to global EV markets
  • One of the leading global companies and gaining market share diversified across key automotive geographies, products, vehicle segments, and customers
  • Strong research and development and technological capabilities in both hardware and software development
  • Strong business development with a customer-centric approach
  • Consistent financial performance with industry-leading metrics

Company Strategy

  • “Electrification” – Capturing market opportunity in the growing EV space
  • Increasing market share globally
  • Continue to focus on R&D to develop new and innovative systems and components

Proceeds from Sona Comstar IPO will be used to:

  • Repayment and/or prepayment, in full or part, of certain borrowings availed by Company; and
  • General corporate purposes

Sona Comstar IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹623.12 Cr₹699.22 Cr₹1037.9 Cr₹1026.9 Cr
Profit before Excep*₹131.11 Cr₹154.55 Cr₹154.97 Cr₹211.05 Cr
Profit after Tax77.57 Cr₹173.18 Cr₹360.34 Cr₹155.47 Cr
EPS (Basic)2.593.017.062.71
*Tax and Exceptional Items
As of March 2020EPS (Avg)P/E (Floor)P/E (Cap)
Based on basic EPS5.6550.4451.50

Comparison with listed industry peers

CompanyP/E (Cap)
Sona Comstar51.50
Highest41,000
Lowest (SAIL)21
Sector Avg4150.66

Sona Comstar IPO Dashboard

Issue Details

TypeValue
Issue Size₹5,550 Cr
Fresh Issue300 Cr
Offer for Sale5,250 Cr
Face Value₹10/- per Equity Share
IPO Price₹285 – ₹291
Lot Size51 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open14/06/2021
Bid Close16/06/2021
Allotment Finalization21/06/2021
Initiation of Refunds22/06/2021
Credit of Shares23/06/2021
Listing Date24/06/2021

Lot Size and Price

LotsSharesAmount
151₹14,841
13663₹1,92,993

Promoter Holding

HoldingPercentage
Pre-Issue100 %
Post-Issue– %

Sona Comstar IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%5,84,21,052 shares
NII35%2,92,10,526 shares
RII (Retail)15%1,94,73,684 shares
Total100%10,71,05,262 shares

Sona Comstar IPO: Risks

  • Business is dependent on the performance of the automotive sector globally, including in its key markets such as US, Europe, India, and China
  • Business largely depends upon top ten customers and the loss of such customers or a significant reduction in purchases by such customers will have a significantly adverse impact the business
  • Business is dependent on the success of R&D and the failure to develop new or improved products or process improvements or production techniques could subject to write-offs or
    otherwise adversely affects
  • The Company may not realize all of the revenue expected from the new and incremental business backlog and does not have firm commitment agreements with customers.
  • Pricing pressure from customers may affect the gross margin, profitability and ability to increase our prices, which in turn may materially adversely affect the business

For complete internal and external risk factors, you can refer the DRHP of the company.

Sona Comstar IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)
Selenium Building, Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.

Phone:040-79611000
Email: [email protected]

Lead Managers of the Issue

Credit Suisse Securities Private Limited
JP Morgan India Pvt Limited
Kotak Mahindra Capital Company Ltd
JM Financial Limited

Nomura Financial Advisory

Phone: +91-22-4366 0000 / +91-22-6777 3885
Email: [email protected]

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