Sona Comstar IPO final day: Issue subscribed 2.33 times, QIB portion booked 3.54 times

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Sona BLW Precision Forgings Limited (Sona Comstar), one of India’s leading automotive technology companies; received bids of 24,44,26,935 shares against the offered 10,71,05,262 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 1.61 times. While the Qualified Institutional Buyer category was subscribed 3.54 times, the Non-Institutional Investor category was subscribed 0.40 times.

The total size of the offer is Rs. 5,250 crores at the upper price band of Rs. 291 per share.

The Company raised Rs. 2,498 crores through 42 anchor investors.

Key brokerage houses like Angel Broking, Canara Bank Securities, Motilal Oswal, ICICI, Nirmal Bang Hem Securities, IndSec Securities and Ventura have given recommendations of “Subscribe” to the issue for long term perspective while highlighting the key strengths of the company like strong clientele, niche diversified and high margin product portfolio. derives ~40% of its revenues from high growth areas like Battery Electric Vehicles (BEV) and Hybrid Vehicles. It is among the top 10 players globally for differential bevel gears and for starter motors for the PV segment. It had 5% market share for differential bevel gears, 3% for starter motors and 8.7% for BEV differential assemblies. They have a diversified customer base across the globe with 75% of their income (sale of goods, FY21) coming from end-use in overseas markets. Emphasis on R&D is one the strongest aspects of the company. With EV’s gaining ground with Sona Comstar is poised to gain from this segment. Also, it has never lost any customers since its inception.

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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 (“BRLMs”) to the Offer.