American private equity giant-backed Sona Comstar to go for initial public offering (IPO) worth around Rs 6,000 crore, stated a news report. The auto-component company has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI), claimed the report.
This will be one of the largest listings of an enterprise from its India portfolio in 2021
“The total size is Rs 6,000 crore with a primary component of Rs 300 crore and the balance secondary component of Rs 5,700 crore,” it was stated.
The IPO proceeds will primarily be for repayment of existing debt and the rest will create debt funding capacity for additional future capex investments. Meanwhile, it is stated that Blackstone will continue to be an investor in the company, it is unclear how much shares will the equity giant offload.
The company-led by Sunjay Kapur reported a profit before tax of Rs 1,549.71 million for the financial year ended in March 2020.
The company supplies to the likes of Maruti Suzuki, Daimler, Volvo Cars, Mahindra and Mahindra, and Ashok Leyland among others.
Gurugram-based global company started its journey in 1995 as Sona Okegawa Precision Forgings, which was a 75:25 joint venture between the Sona Group and Mitsubishi Materials. The Sona Group, after acquiring Thyssenkrupp forging business and 25 per cent stake of Mitsubishi, renamed the company to Sona BLW Precision Forgings. In 2019, Sona BLW acquired Comstar Automotive and created a new identity.
Sona Comstar has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six manufacturing facilities are located in India.