Sona Comstar Receives SEBI Approval to Issue Rs 6,000 Crore IPO

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Sona Comstar had filed preliminary IPO papers in February

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Capital markets regulator Sebi has approved Gurugram-based auto components manufacturer Sona BLW Precision Forgings’ (Sona Comstar) request to raise Rs 6,000 crore through an initial share sale. 

Citing a draft red herring prospectus, a PTI report said that the IPO comprises a fund-raise via fresh issue amounting to Rs 300 crore and an offer for sale aggregating up to Rs 5,700 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.

The proceeds from the fresh issue will be utilised by the Blackstone promoted company to repay/prepay Rs 225 crore of its borrowings and for general corporate purposes. 

Sona Comstar had filed preliminary IPO papers in February.

Sona Comstar supplies components to automotive OEMs 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. 

The company is also one of the two largest exporters of starter motors from the country besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India.

Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicle maker, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.

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