Sona Comstar subscribed 28% on Day 2; Shayam Metalics 3.65 times
Sona Comstar’s offer received bids for 2.91 crore shares against the offer size of 10.71 crore equity shares
The initial public offer of Sona BLW Precision Forgings (Sona Comstar) was 28% subscription on second day of bidding, after an overwhelming response from retail investors.
The offer received bids for 2.91 crore shares against the offer size of 10.71 crore equity shares.
Retail investor portion was subscribed 1.02 times, Qualified institutional buyers has subscribed 14% and non-institutional investors 4%.
The price band for the issue has been set at ₹285-291 per equity share. The IPO comprises a fresh issue of ₹300 crore and an offer for sale of ₹5,250 crore by Singapore VII Topco III Pte Ltd, an affiliate of The Blackstone Group.
Analysts at Angel Broking in a IPO note said “Sona Comstar is present in the right areas and can be a major beneficiary of shift in focus of Global Original equipment Manufacturer (OEM’s) towards electric vehicle(EV) over the next decade. As per industry reports, and is among handful of companies in the world with strong motor and driveline capabilities".
"The brokerages believe that the company can maintain strong growth rates from its current base given higher salience of revenues from battery electric vehicle (BEVs) vs. industry. Ramp-up of business by select Global OEMs with EV offerings provides evidence while increasing average realization per vehicle would drive top-line growth" it added.
The ₹909 crore initial public offer (IPO) of Shyam Metalics and Energy was subscribed 3.65 times on the second day of bidding.
According to the subscription data available on the exchanges, the offer received total of 4.31 crore over the IPO size of 2.11 crore.
Retail investor portion was subscribed 5.79 times, Qualified institutional buyers has subscribed 81% and non-institutional investors 2.6 times and employees portion was subscribed 78%.
Analysts at Canara Bank in an IPO note said “SMEL’s backward and forward integration along with captive power plant and captive railway siding allows to deliver strong operating margins. The company’s presence across eastern coast provides export growth potential. SMEL has maintained low leverage with healthy capitalisation metrics".
"The company has plans to increase manufacturing capacities capacity from 5.71 MTPA to 11.60 MTPA by 2025. It has plans to add manufacturing facilities of Ductile Pipe, Blast furnace and Aluminium foil. The company would trade at P/E of 21x for FY20 which is quite attractive as compared to listed peers. Considering the company’s capacity expansion plans and growth prospectus" it added.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!