SONA COMSTAR
The company was incorporated in the year 1995 as Sona Okegawa Precision Forgings Ltd. and commenced its productions for differential bevel gear at their first plant in Gurugram, Haryana, India. In the year 1999, they launched a manufacturing plant in Chennai, Tamil Nadu, India. Their business is dependent on the performance of the automotive sector globally, including key markets such as US, Europe, India and China. The Company’s largely dependent upon their top ten customers and the loss of such customers will have a significant impact on their business.
Development of their technology advanced systems and components involves a lengthy and expensive processes with uncertain timelines and uncertain outcomes as well. They are dependent on the success of R&D. The Company’s CSR activities: Sona Comstar- Samridh Bharat Program, which focused on achieving environmental sustainability, ecological balance of natural resources. They also run a program for health care and nutrition through measures such as health outreach program, health awareness program under the name of Soma Comstar- Samridh Bharat Program. They are the leading supplier to the fast-growing global electric vehicle markets. The Company has some major promoters divided into two categories: Natural Persons forming part of Sona Promoters Group and Entities forming part of the Sona Promoters Group.
The Initial public offer (IPO) of Sona BLW Precision Forgings (Sona Comstar) has started from Monday. The auto component manufacturer is looking to raise nearly Rs.5550 Cr. from the primary market. This issue is comprised of fresh issuance of equity shares, amounting nearly Rs.300 Cr. and an offer for sale of shares worth up to Rs.5250 Cr. The quota for retail investors is fixed at 10% of the net offer. The QIB quota Is fixed at 75% and 15% of the offer is reserved for NIIs. It is listed on BSE and NSE with a minimum order quantity of 51 shares and a market lot of 51 shares as well.
The percentage that promoters liquidated for IPO are Sona Autocomp Holdings Private Limited – 0.60%, Singapore VII Topco III Pvt Ltd – 32.10%. Freshly issue amount is 300 crores.
Some of the listed peers of the company are Motherson Sumi systems, Sundaram Clayton, Varroc Engineering, Bosch, Bharat Forge, Endurance Technologies and Minda Industries. The finalization of the basis of allotment is likely by June 21 and the initialization of refunds by June 22. The shares will likely be credited to de-mat accounts by June 23.
