Blackstone to sell entire 20.5% stake in Sona BLW: Report

Blackstone will sell its whole 20.5% stake in Sona BLW Precision Forgings through a block transaction at a floor price of ₹400 per share, according to a report from CNBC. Blackstone, through a company named Singapore VII Topco III PTE. Ltd., owns a stake in Sona BLW.

Blackstone, one of Sona BLW's promoters, owned 11,99,25,641 shares as of the December 2022 quarter, equaling a 20.50% stake in the company, according to shareholding data from the BSE. With its Initial Public Offering (IPO) in June 2021, Sona BLW raised ₹5,550 crore. Singapore VII Topco III Pte Ltd, a subsidiary of Blackstone Group Inc., sold shares valued up to ₹5,250 crore through fresh issue of equity shares of up to ₹300 crore. 

Sona BLW Precision Forgings, a manufacturer of automotive components, reported a 24% rise in its consolidated net profit for the third quarter ended December 31, 2022, to ₹107 crore, compared to a net profit of ₹86 crore in the October-December quarter of the previous fiscal. According to the company, revenue from operations rose to ₹675 crore during Q3FY23 against ₹486 crore during Q3FY22.

On Friday, the shares of Sona BLW Precision Forgings closed on the NSE at ₹436.90 apiece level, down by 2.15% from the previous close of ₹446.50. The stock recorded a total volume of 12,05,611 shares compared to a 20-Day average volume of 6,49,826 shares. In the last 1 year the stock has fallen 28.72% and on a YTD basis it has gained 4.22% so far in 2023. The stock touched a 52-week-high of ₹706.60 on (21-Mar-2022) and a 52-week-low of ₹398.05 on (26-Dec-2022). 

During Q3FY23, the company recorded a promoter shareholding of 53.53%, FIIs stake of 11.27%, DIIs stake of 24.37% and a public stake of 10.83%. According to Trendlyne data, promoters' shareholding in Sona BLW Precision Forgings diminished from 53.59% in the September 2022 quarter to 53.53% in the December 2022 quarter, while FII/FPI holdings lowered from 11.56% to 11.27%, mutual funds' holdings risen from 21.03% to 21.78%, and institutional investors' holdings shrunk from 36.08% in Q2FY23 to 35.64% in Q3FY23.