Auto component manufacturer Sona Comstar will launch an initial public offer (IPO) on June 14 at a price band of Rs 285-291 per share. The issue will close on June 16.
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 has reserved 75 percent portion of the total issue size for qualified institutional buyers, 10 percent for retail, and 15 percent for non-institutional investors.
The issue market lot size is 51 shares and a retail-individual investor can apply for up to 13 lots.
Blackstone will sell half of its holding and will own a little over 33 percent in Sona Comstar.
The company proposes to utilise the fresh issue proceeds for repaying debts and general corporate purposes.
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.
Sona Comstar is one of India's leading automotive technology companies. It is engaged in 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.
The company supplies its products across the countries such as India, the US, Europe, and China. It has nine manufacturing and assembly facilities across the USA, India, China, and Mexico.
Sunjay Kapur, Sona Autocomp, and Singapore Topco are promoters of the company.
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.
The company has been gaining market share competing with global OEMs and has a global market share of 8.7 percent in BEVs. Around 14 percent of its revenue comes from pure BEVs and 27 percent from hybrids and micro-hybrids.
It is the largest manufacturer of differential gears for PVs, CVs, and tractor OEMs in India.