Sona BLW precision forgings raises ₹2,400 Crores via QIP

Sona BLW Precision Forgings Ltd. (“Sona Comstar”), a mobility technology company focused on electrified and non-electrified powertrain components, has raised ₹2,400 crore through a Qualified Institutions Placement (QIP). The QIP saw significant participation from institutional investors and sovereign wealth funds, resulting in 5.5 times subscription.

The QIP, which opened on September 4, 2024, and closed on September 9, 2024, involved the issuance of 34,782,608 equity shares to qualified institutional buyers at a price of ₹690 per share, including a premium of ₹680. Key participants in the issue included SBI Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, Axis Mutual Fund, and several others.

The funds raised through the QIP will be used to strengthen Sona Comstar’s capital structure and support both organic and inorganic growth initiatives. 

Vivek Vikram Singh, MD & Group CEO of Sona Comstar, acknowledged the participation of both existing and new shareholders, stating that the company plans to use the proceeds to support its long-term growth strategies.

Jefferies India Private Limited and JM Financial Limited acted as the Book Running Lead Managers (BRLMs), with Shardul Amarchand Mangaldas & Co. serving as legal counsel for Sona Comstar, and AZB & Partners and Linklaters Singapore Pte. Ltd. serving as legal counsel for the BRLMs.