New Delhi (Anish Yande): Sona Comstar would be launching its initial public offering on June 14. The auto components manufacturer aims to raise up to Rs 5,550-crore through the launch of the IPO. Check all details of the upcoming Sona Comstar IPO here.
Important details of Sona Comstar IPO:
The initial public offer would amount to Rs 5,550-crore. The price band for the Sona Comstar issue is fixed at Rs 285–291 per share. The company's IPO will open on 14 June and close on 16 June.
Sona Comstar's initial public offer would consist of a fresh issue of up to Rs 300 crore. Offer for sale would amount up to Rs 5,250 crore. The offer for sale would consist of up to Rs 5,250 crore by promoter Singapore VII Topco III Pte. Ltd.
Singapore VII Topco III Pte. Ltd, a firm that is a part of the Blackstone Group holds a 66.28% stake in Sona Comstar. Sona Autocomp Holding Pvt Ltd retains the rest of the stake in the company. Following the public listing, the firm will hold a little over 33 per cent in Sona Comstar.
Investors can opt for a minimum of 51 equity shares in a bid and multiples of 51 equity shares. The reserved portion for qualified institutional buyers is fixed at 75 per cent of the total issue size. Retail investors can bid a 10 per cent stake and non-institutional investors can bid a 15 per cent stake.
Sona Comstar to repay Rs 241 crore of borrowings:
The company aims to use the proceeds from the fresh issue for repaying Rs 241 crore of Sona Comstar's borrowings. The book running lead managers to the Sona Comstar issue are Credit Suisse Securities India, JM Financial, JP Morgan India, Kotak Mahindra Capital, and Nomura Financial Advisory and Securities
Sona Comstar is one of India's leading automotive technology companies.
Blackstone had merged Comstar, the Chennai-based auto component firm and Sona BLW to establish Sona Comstar in August 2019.
The company manufactures and distributes EV traction motors, differential assemblies, differential gears, and micro-hybrid starter motors. Sona Comstar operates in markets across the US, Europe, India and China with nine manufacturing and assembly facilities across India, China, Mexico and the US.
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