The public offer comprises a fund raise via a fresh issuance of shares amounting to Rs 300 crore and Rs 5,700 crore through an offer-for-sale by shareholder Singapore VII Topco III Pte Ltd, which is an affiliate of The Blackstone Group Inc.
During FY16-20, the company saw its total operating income grow at the CAGR of 10.9 per cent. In FY20, as compared to the top 10 publicly-listed auto component manufacturers in India by market capitalization, Sona BLW Precision Forgings had the highest operating EBITA margin, PAT margin, ROCE and ROE, the company claims.
Kotak Mahindra Capital Company, Credit Suisse Securities, JP Morgan India,
and Nomura Financial Advisory and Securities are the book running lead managers (BRLMS) to the issue.
The Gurugram-headquartered company is one of India’s leading automotive technology companies, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units.
It also stands to be one of the two largest exporters of starter motors from India besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India. Some of its key OEM customers include a global OEM of EVs, a North American OEM of passenger vehicles and commercial vehicles, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.