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Sona Comstar raises Rs 2497.5 crore from anchor investors before IPO

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Global Automotive Supplier Sona BLW Precision Forgings (Sona Comstar ), promoted by leading international investment firm Blackstone, on June 11 raised Rs 2,497.5 crore from anchor investors.

Sona Comstar raises Rs 2497.5 crore from anchor investors before IPO
Blackstone-backed Global Automotive Supplier Sona BLW Precision Forgings (Sona Comstar), raised Rs 2,497.5 crore from anchor investors on Friday ahead of its Initial Public Offer (IPO).  With this, the company has already raised 45 percent of funds out of the total issue size of Rs 5,550 crore.

The company said that it has finalised the allocation of 8,58,24,742 equity shares to 56 anchor investors at a price of Rs 291 per share.

The company claims that its public offer, which closes on June 16, will be the largest by an auto component maker. The IPO will consist of fresh issuance of equity shares to a tune of Rs 300 crore, and an offer for sale of shares worth up to Rs 5,250 crore, thus adding up to the total issue size of Rs 5,550 crore.

Sona Comstar is seeking to utilise the proceeds from the fresh issue to repay/prepay approximately Rs 241.12 crore of its identified borrowings, and for other general corporate purposes.

The company was able to secure a massive investment of Rs 401.5 crore from Government of Singapore Investment Corporation (GIC), and the Monetary Authority of Singapore (MAS) through the anchor book.

It also saw significant participation from foreign portfolio investors like Nomura, Fidelity, Eastspring, Goldman Sachs, Morgan Stanley, Societe Generale to name a few. Domestic investors include SBI MF, Axis MF, Aditya Birla Sun Life MF, HDFC MF among others.

Sona Comstar filed its preliminary IPO papers in February and was given the green signal by Sebi in May to float the public issue. The initial size of the public issue was Rs 6,000 crores and was then reduced to Rs 5,550.

75 percent of the IPO has been reserved for qualified institutional buyers while 15 per cent for non-institutional bidders and 10 per cent for retail investors.

Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial and Nomura Financial Advisory and Securities are serving as the book running lead managers of the issue.

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CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
Wipro599.15 14.95 2.56
SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
SBI429.15 7.15 1.69
HCL Tech994.25 15.65 1.60
Axis Bank755.25 8.75 1.17

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