Blackstone backed Tier 1 supplier, Sona Comstar will launch is IPO or initial public on June 14 for three days and the issue will close on June 16. The price band has been fixed at Rs 285-291 per share.
The Rs 5,500 crore issue comprises of Rs 300 crore worth fresh issuance of equity shares and an offer for sale of a 32.7 percent stake by Singapore VII Topco III. The company will be using the proceeds to repay Rs 241 crore debt and general corporate purposes and future capex investments particularly in electrification.
With a face value of Rs 10 per share, the minimum bid lot is set at 51 equity shares, and in multiples of 51 equity shares thereafter. While 75 percent of the IPO will be reserved for QIP (Qualified Institutional Placement), 15 percent will be available for non-institutional bidders and 10 percent allocated for individual bidders.
The company is among the Top 10 global players in supplying differential bevel gears, with a monopolistic 85-90 percent share in the domestic commercial vehicle and tractor segments and 55-60 percent share in the passenger vehicle segment. It is also among the world’s Top 10 starter-motor suppliers with a 3 percent global market share in CY2020. It has also sustained an EBIDTA margin of 26 percent for the last three financial years, starting FY2019.
With an existing global share of 8.7 percent in BEV differential assembly last year with a 14 percent revenue contribution, going forward, Sona Comstar aims to intensify its stand in the EV segment. It claims having secured 58 new BEV supply programmes from 27 customers with SOP starting 2021 and beyond for products including differential assemblies, BLDC motors, e-axles and motor controllers.