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Sona Comstar IPO opens: Here are the key things to know

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The initial public offering of automobile technology company Sona BLW Precision Forgings or Sona Comstar opened today.

Sona Comstar IPO opens: Here are the key things to know
The initial public offering of automobile technology company Sona BLW Precision Forgings or Sona Comstar opened today. The IPO of the Blackstone-backed firm will close on Wednesday.
Here are the key things to know before you subscribe to the offer:
  • The total offer size is up to Rs 5,550 crore with a fresh issuance of equity shares aggregating up to Rs 300 crore and an offer for sale of equity shares aggregating up to Rs 5,250 crore, by the selling shareholder, namely, Singapore VII Topco III Pte. Ltd.
  • The price band for the offer has been determined at Rs 285-Rs 291 per equity share, the company said.
  • The proceeds from the fresh issue will be used to repay approximately Rs 241.12 crore of its identified borrowings in addition to general corporate purposes.
  • Investors can bid for a minimum of 51 equity shares and in multiples of 51 equity shares after that.
  • LKP Securities, ICICI Direct, Choice Broking and Canara Bank Securities have advised subscribing to the issue for long term.
  • 75 percent of the offer has been fixed for qualified institutional buyers, 15 percent for non-institutional bidders and the balance 10 percent for retail investors.
  • About the company
    The company is a manufacturer of high precision, engineered automotive systems and components, supplying to Indian and international OEMs across electrified as well as non-electrified powertrain domains. The company is among the top ten players globally in the differential bevel gear market on the basis of overall volumes of differential bevel gears supplied to PVs, CVs and tractors. It is also amongst the top ten global starter motor suppliers based on exposure to the PV segment and market share in CY 2020, according to the Ricardo Report. It is the largest manufacturer of differential gears for PV, CV and tractors.
    Financials
     The company was among the top ten auto-component manufacturers in India when it comes to operating EBITDA and profit before tax in FY20. Its consolidated income from the sale of goods stood at Rs 1,488.93 crore in FY21 as compared to Rs 1,180.42 crore for FY20.
    Management
     Sunjay Kapur, Sona Autocomp and Singapore Topco are the promoters of the company.

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    CompanyPriceChng%Chng
    Tata Motors295.55 -7.00 -2.31
    Grasim1,549.50 -32.55 -2.06
    Larsen1,611.75 -30.40 -1.85
    Adani Ports680.05 -11.75 -1.70
    Tech Mahindra1,131.00 -17.60 -1.53
    CompanyPriceChng%Chng
    Larsen1,612.00 -29.55 -1.80
    HUL2,359.25 -19.40 -0.82
    Reliance2,105.20 -15.80 -0.74
    Asian Paints3,083.20 -21.25 -0.68
    NTPC118.50 -0.80 -0.67

    Currency

    CompanyPriceChng%Chng
    Dollar-Rupee74.4000-0.0600-0.08
    Euro-Rupee87.5450-0.0830-0.09
    Pound-Rupee102.3880-0.0780-0.08
    Rupee-100 Yen0.6730-0.0030-0.44