Sona Comstar IPO: Opens today; Key details an investor should know before subscribing

Auto Component marker Sona BLW Precision Forgings (Sona Constar) initial public offering (IPO) is scheduled to open for subscription on Monday, June 14, 2021. The subscription will close on June 16, 2021. This is the second-largest IPO in terms of size after PowerGrid InvIT in 2021.

The price band of the issue has been fixed at Rs 285-291 per share. The company seeks to raise up to Rs 5,550 crore the issue. Investors can bid for a minimum of 51 equity shares and in multiples of 51 equity shares thereafter. Retail investors can make a minimum investment of Rs 14,841 and a maximum of Rs 1,92,933. 75 per cent of the offer has been fixed for qualified institutional buyers, 15 per cent for non-institutional bidders and the balance 10 per cent for retail investors.

The IPO comprises a fresh issue of shares amounting to Rs 300 crore and an offer-for-sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.

The company will use the net proceeds from the fresh issue for repaying of debt of Rs 241.12 crore, besides general corporate purposes, while the offer for sale money will go to selling shareholder.

The equity shares are proposed to be listed on the BSE and NSE. Kotak Mahindra Capital Company, Credit Suisse Securities (India), JM Financial, JP Morgan India and Nomura Financial Advisory and Securities (India) are the book running lead managers to the offer.

The company has already raised Rs 2,498 crore by issuing shares to 24 anchor investors ahead of the opening of its initial public offering. The anchor issue is the third-largest in Indian capital market history after SBI Cards and Payment Services and Power Grid Infrastructure Investment Trust.

Sona Comstar is a leading automotive technology company engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components.