New Delhi (Anish Yande): Sona Comstar has opened its initial public offering for subscription on June 14. The auto components manufacturer would aim to raise up to Rs 5,550-crore through the launch of the IPO. Check all details of the Sona Comstar IPO here.
Important details of Sona Comstar IPO:
The initial public offer would come with a total offer size amounting to Rs 5,550-crore. The price band for the Sona Comstar issue is fixed at Rs 285–291 per share. The company's IPO will close on 16 June.
Sona Comstar's fresh issue of the initial public offer would consist of up to Rs 300 crore. The offer for sale is worth up to Rs 5,250 crore. The offer for sale consists of up to Rs 5,250 crore by promoter Singapore VII Topco III Pte. Ltd.
Blackstone Group holds a 66.28% stake in Sona Comstar, through Singapore VII Topco III Pte. Ltd, a firm that is a part of the Blackstone Group. Sona Autocomp Holding Pvt Ltd holds the rest of the stake in the auto components manufacturer. Following the public listing, the promoters will hold a reduced stake of over 33 per cent stake in Sona Comstar.
Sona Comstar to repay borrowings with proceeds:
Investors can bid for a minimum of 51 equity shares and in multiples of 51 equity shares. Qualified institutional buyers would have a reserved portion fixed at 75 per cent of the total issue size. Retail investors can bid from a reserved portion of 10 per cent stake and non-institutional investors can bid a 15 per cent stake.
Sona Comstar aims to use the proceeds from the fresh issue for repaying Rs 241 crore of the company's borrowings. The book running lead managers to the Sona Comstar issue are JM Financial, JP Morgan India, Kotak Mahindra Capital, Credit Suisse Securities India, and Nomura Financial Advisory and Securities.
Sona Comstar is one of India's leading auto component companies. The company manufactures and distributes EV traction motors, assemblies, gears, and micro-hybrid starter motors. Sona Comstar operates nine manufacturing and assembly facilities across China, Mexico, India, and the US.
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