Sona Comstar IPO subscribed 27 pc on second day of subscription
- Country:
- India
Auto component maker Sona BLW Precision Forgings' initial public offer was subscribed 27 per cent on the second day of subscription on Tuesday.
According to an update on the BSE, it received bids for 2,91,25,182 shares as against 10,71,05,262 shares on offer.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 14 per cent, those for noninstitutional investors 4 per cent, and retail individual investors (RIIs) 1.02 times.
Sona BLW Precision Forgings (Sona Comstar) has garnered Rs 2,498 crore from anchor 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 price band for the offer has been fixed at Rs 285-291 a share, which will conclude on June 16.
The Blackstone-promoted company intends to utilise the proceeds from the fresh issue to repay/prepay a little over Rs 241 crore of its borrowings besides general corporate purposes.
The company is into designing, manufacturing, and supplying highly engineered 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.
It supplies components to automotive OEMs (original equipment manufacturer) across the US, Europe, India, and China, for both electrified and non-electrified powertrain segments and is not dependent on a single product, vehicle segment, customer, or geography.
Sona Comstar, which filed preliminary IPO papers in February, obtained Sebi's go-ahead in early May to float the public issue.
Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India, JM Financial, and Nomura Financial Advisory and Securities are the book running lead managers (BRLM) to the issue.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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