The public offer comprises of a fund raise via a fresh issuance of shares amounting to Rs300 cr and Rs5,700 cr through an offer-for-sale by shareholder Singapore VII Topco III Pte Ltd., an affiliate of The Blackstone Group Inc
Private equity firm, Blackstone Group Inc, promoted automotive component manufacturer, Sona BLW Precision Forgings Limited on Tuesday received consent from capital markets regulator SEBI for the initial public offering through which it plans to raise ₹6,000 crore.
“The public offer comprises of a fund raise via a fresh issuance of shares amounting to Rs. 300 cr and Rs. 5,700 cr through an offer-for-sale by shareholder Singapore VII Topco III Pte Ltd., an affiliate of The Blackstone Group Inc.," the company said in a statement.
Kotak Mahindra Capital Company Ltd, Credit Suisse Securities Pvt Ltd, J.P. Morgan India Pvt Ltd, JM Financial Ltd and Nomura Financial Advisory and Securities Pvt Ltd are the book running lead managers for the share sale.
Sona BLW manufactures critical components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, electric vehicle traction motors and motor control units for Original Equipment Manufacturers (OEMs) across United States, Europe, India and China, for both electrified and non-electrified powertrain segments.
According to the company, its total operating income grew at the CAGR of 10.9% between FY16-20. In FY 20, as compared to the top ten publicly listed auto component manufacturers in India by market capitalization, Sona BLW Precision Forgings has the highest operating EBITA margin, PAT margin, ROCE and ROE.
“It also stands to be one of the two largest exporters of starter motors from India 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 OEM of Passenger Vehicles and Commercial Vehicles, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher," the statement added.
With automobile manufacturers expected to move towards development and manufacturing of electric vehicles in the coming years, component manufacturers like Sona BLW are expected to benefit from the move because of its existing investments in electric technology.