Sona BLW stock soars 4% on plans to launch Rs 2,400 crore QIP

Sona BLW has set a floor price at Rs 699.01 per share for the QIP

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26 Aug, 2025 12:21

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Shares of Sona BLW Precision Forgings surged over 4 percent in morning trade on September 5 after the company revealed plans to launch a Rs 2,400 crore Qualified Institutional Placement
(QIP). The company has set a floor price at Rs 699.01 per share for the QIP fund raise and may offer another 5 percent discount at its own discretion.

At 09.42 am, shares of Sona BLW Precision Forgings were trading at Rs 737.50 on the NSE, off its high of Rs 752.40.

The proceeds will be used to repay or prepay, either fully or partially, certain outstanding debts. A portion will also go towards completing the acquisition of Novelic, supporting strategic investments, and driving both organic and inorganic growth. Additionally, the funds will also be allocated for purchasing fixed assets like equipment and machinery, along with general corporate purposes.

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Just yesterday, CNBC-TV18 also reported that the company was in talks to acquire the rail engineering business of Escorts Kubota, at a valuation of Rs 2,000 crore. The report also stated plans for a Rs 2,000 crore QIP to fund the acquisition.

For FY24, Escorts Kubota's railways business reported revenue of Rs 950 crore, contributing 11 percent to the company's overall topline as of the June quarter.

Last year, reports circulated about potential talks between Escorts and Knorr-Bremse, which likely fell through over valuation concerns. In October 2023, CNBC-TV18 had reported that Knorr-Bremse Group was in talks to acquire Escorts Kubota's railway business for over Rs 4,000 crore.

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