As stock markets hit record highs, the IPO space is also heating up. The 18th IPO this year will be of global automotive component manufacturer Sona BLW Precision Forgings. If it achieves a successful launch, it will be the largest-ever IPO by an automotive parts maker. We bring you the most important details about Sona BLW Precision Forgings.
Key details
- Price band: ₹285–291 per equity share
- Lot size: 51 shares
- IPO size: ₹5,550 crore
- Fresh issue: ₹300 crore
- Cost per lot: ₹14,841
- Issue opens: 14 June 2021
- Issue closes: 16 June 2021
- Basis of allotment date: 21 June 2021
- Initiation of refunds: 22 June 2021
- Credit of shares to demat account: 23 June 2021
- Expected listing date: 24 June 2021
About Sona BLW Precision Forgings
Global automotive player Sona BLW Precision Forgings is set to hit the bourses on 14 June as the auto industry shrugs off the pandemic impact. The Blackstone-backed automotive components maker boasts of prestigious clients such as Tata Motors, Ashok Leyland, Daimler and Volvo. It derives 75% of its revenue from overseas clients.
The company also has a well-diversified and strong portfolio of products. It is a leading player in manufacturing of differential bevel gears, starter motors and EV battery differential assemblies with a global market share of 5%, 3% and 8.7%, respectively, in 2020.
As electric vehicles gear up to go mainstream, Sona BLW Precision Forgings is well-equipped to service this market. It has increased its sales to the EV market at a CAGR of 243.6% from ₹17.42 crore in FY19 to ₹205.70 crore in FY21.
About the issue
Sona BLW Precision Forgings will use the IPO proceeds for repaying loans of ₹241 crore, as well as for general corporate purposes.
IPO allocation quota
| QIB | NIB | Retail |
| 75% | 15% | 10% |
To know more about the IPO, read its red herring prospectus here. The issue opens on 14 June 2021. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!