Shares of Sona BLW Precision Forgings (Sona Comstar) saw heavy selling on August 18 after about 9.6 crore shares changed hands via block deals, according to Bloomberg.
The Blackstone Group, that holds 34.12 percent stake in the company, was seeking to raise as much as Rs 3,180 crore through the sale of shares in the automotive component maker, according to terms of the deal seen by Bloomberg News. There was no information on who bought the shares.
CNBC TV-18 had earlier reported the American private equity firm would sell a 13.6 percent stake in the firm at Rs 500 per share and raise about Rs 4,000 crore from the transaction.
The price was trading at a 7 percent discount to the last closing price, which led to sell-off in the scrip.
As of 10:00 am, the stock fell as much as 6.3 percent to its lowest level since September 3 last year, but thanks to some buying at lows, it traded at Rs 518, down 4 percent.
Analysts who track the stock seem to be upbeat on the counter. IDBI Capital said the Company made its first major electric vehicle (EV) breakthrough in the domestic market for supplying traction motors to Indian electric two-wheeler makers.
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“We believe Sona BLW is likely to be fastest growing India based Auto ancillary company with 34 percent PAT CAGR over FY22-24 and having significant exposure to EV segment. We retain our estimates for FY23 & FY24 and maintain our BUY rating with price target Rs 770,” the broker said.
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