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Sona Comstar IPO: Blackstone-backed firm to open issue on June 14, price band fixed at Rs 285-291

The Rs 5,550-crore Sona Comstar IPO comprises a fresh issue of Rs 300 crore and an offer for sale of up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd

June 09, 2021 / 09:29 AM IST

Auto parts firm Sona Comstar will launch an initial public offer (IPO) on June 14. The issue will close on June 16. The company, in consultation with merchant bankers, has fixed a price band at Rs 285-291 per share for its IPO.

The Rs 5,550-crore offer comprises a fresh issue of Rs 300 crore and an offer for sale of up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd.

The company will utilise fresh issue proceeds for repaying of debts, and general corporate purposes.

Moneycontrol reported on June 8 about the expected launch of Sona Comstar IPO. Moneycontrol was also the first to report the firm’s listing plans on January 20, 2021.

Bids can be made for a minimum of 51 equity shares and in multiples of 51 equity shares thereafter. The reserved portion for qualified institutional buyers has been fixed at 75 percent of total issue size, for retail 10 percent and non-institutional investors 15 percent.

Another company, Shyam Metalics, will launch its IPO on June 14.

Sona Comstar 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 and motor control units to automotive OEMs across US, Europe, India and China.

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The company provides products for both electrified and non-electrified powertrain segments. It has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India.

In August 2019, Blackstone announced the merger of Chennai-based auto component firm Comstar, which it controlled, with Sunjay Kapur's Sona BLW to create Sona Comstar.

Sunjay Kapur, Sona Autocomp and Singapore Topco are promoters of the company.

Sona Comstar compares itself with Motherson Sumi Systems, Sundaram-Clayton, Bosch, Bharat Forge, Mahindra CIE Automotive, Endurance Technologies, Varroc Engineering, Minda Industries, Sundram Fasteners, and Wabco India.

Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial, and Nomura Financial Advisory and Securities are the book running lead managers to the issue.
Moneycontrol News
first published: Jun 9, 2021 08:51 am