Sona BLW Precision Forgings Limited (Sona Comstar), one of India's leading automotive technology companies; received bids of 1,13,93,298 shares against the offered 10,71,05,262 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 0.52 times. While the Qualified Institutional Buyer category was subscribed 0.02 times, the Non-Institutional Investor category was subscribed 0.01 times.
The total size of the offer is Rs. 5,250 crores at the upper price band of Rs. 291 per share.
The Company raised Rs. 2,498 crores through 42 anchor investors.
Government of Singapore Investment Corporate (GIC) and Monetary Authority of Singapore (MAS) together made a large investment of INR 401.5 crores in the anchor book.
Marquee foreign portfolio investors such as Nomura Asset Management, Fidelity, Eastspring Investments, Goldman Sachs Asset Management, Amundi participated significantly in the anchor book.
Marquee domestic investors include SBI MF, Axis MF, Birla MF, HDFC MF, Mirae Asset MF, SBI Life Insurance, Kotak MF, Kotak Life Insurance, Birla Life Insurance, Max Life Insurance, Bharti Axa, Invesco MF, Canara Robeco MF, Sundaram MF, IIFL, Bank of Baroda MF and Edelweiss amongst others.
Niche global investors with EV investing experience including Thornburg Investment Management and RWC also participated with keen interest.
Kotak Mahindra Capital Company Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers ("BRLMs") to the Offer.
Sona Comstar, a Blackstone backed company, is primarily engaged in designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs. Sona Comstar is a leading supplier to the fast-growing global Electric Vehicle (EV) markets and derived 13.8% revenue from the Battery EV market and 26.7% from the Micro Hybrid / Hybrid market in FY21. Its global market share of BEV differential assemblies in calendar year 2020 was 8.7%. The company is among the top ten players globally in the differential bevel gear market and in the starter motor market on the basis of respective volumes supplied to its end segments in calendar year 2020 and has been gaining global market share across products. According to the Ricardo Report, it serves 6 of the top 10 global PV OEMs, 3 out of top 10 global CV OEMs and 7 out of top 8 global tractor OEMs by volumes. The company has strong R&D, engineering and technological capabilities in precision forging, mechanical and electrical systems, as well as base and application software development. It is diversified across geographies, products, vehicle segments and customers. According to the Crisil Report, the company has the highest operating EBITDA margin, PAT margin, ROCE and ROE in FY20 as compared to top 10 listed auto component manufacturers in India by market capitalization and has consistently delivered more than 26% EBITDA margin and more than 35% average ROE each year over FY19-21. Its operating income growth over FY16-20 has exceeded the average of the same peer set.