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Sona BLW Precision Forgings Ltd IPO

Closed
Subscription Details
  • Open Date 14 Jun
  • Close Date 16 Jun
  • Lot Size 51
  • IPO Size ₹ 5,550 Cr
  • IPO Price Range ₹ 285 to 291
  • Min Investment ₹ 14,841
  • Listing Exchange NSE, BSE

Sona BLW Precision Forgings Ltd IPO Timeline

Open Date
14 Jun
Close Date
16 Jun
Basis of Allotment
21 Jun
Refunds
22 Jun
Credit to Demat Account
23 Jun
Listing Date
24 Jun

IPO Synopsis

Object of the Offer

The offer comprises a fresh issue and an offer for sale. Out of fresh Issue of Rs300cr, Rs241cr is proposed to be utilized towards repayment and prepayment of identified borrowings availed by the company.

Sona BLW Precision Forgings Ltd IPO Subscription Status

Sona Comstar IPO Subscription Status:

 
Category Subscription Status
Qualified Institutional (QIB) 3.46 Times
Non-Institutional (NII) 0.39 Times
Retail Individual 1.58 Times
Total 2.28 Times

Sona Comstar IPO Subscription Details (Day by Day):

Date QIB NII Retail Total
June 14, 2021 17:00 0.02x 0.01x 0.51x 0.11x
June 15, 2021 17:00 0.14x 0.04x 1.02x 0.27x
June 16, 2021 17:00 3.46x 0.39x 1.58x 2.28x

About Sona BLW Precision Forgings Ltd

The company is one of India’s leading automotive technology companies that is involved in 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 (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.

Sona BLW Precision Forgings Ltd Promoter Holding

No data Available

Financials of Sona Comstar (Sona BLW Precision Forgings Limited)

Particulars (Rs Cr)

FY19

FY20

FY21

Revenue from Operations

1,427.70

1,220.10

1,566.30

EBITDA

412.2

325.4

441

EBITDA Margin (%)

28.90

26.70

28.20

ROCE(%)

40.3

29

34.8

ROE (%)

35.6

35.2

36.4

Net Debt to Equity (x)

0.84

0.17

0.26


One of the leading manufacturers and suppliers to global EV markets

For calendar year 2020, Battery Electric Vehicle (BEV) sales as a percentage of total global vehicle sales stood at 3.3%, according to the Ricardo Report. The company derived 13.8% (Rs205.7cr) of the company’s total income from the BEV market for FY21. As a percentage of the total sale of goods, income from sale of goods to the BEV market has grown from 1.3% in FY19 to 13.8% in FY21. For FY21, Rs1,115.8cr representing approximately 74.9% of total income from sale of goods was derived from sale of goods to BEV, hybrid/ micro-hybrid and power source neutral products. The company has been supplying differential gears in the global EV market since April 2016 and differential assemblies since 2018, and according to the Ricardo Report, their global market share of BEV differential assemblies in calendar year 2020 was 8.7%. They also design and manufacture traction motors and motor control units for electric vehicles, with PMSM motors for EV and hybrid PVs and BLDC motors for electric two-wheelers and electric three-wheelers. 

Strong financial and development and technological capabilities in both hardware and software development.

 The company has developed strong in-house capabilities to deliver evolving green technologies for future mobility, with an aggregate expenditure on R&D of Rs156.4cr during FY2019-21. Company’s R&D expenditure amounted to Rs24.4cr, Rs40.5cr and Rs91.5cr during FY2019, FY2020 and FY2021, respectively and constituted 1.7%, 3.3% and 5.8% as a percentage of revenue from operations, respectively. In comparison, average spend of the top ten listed auto component players was 0.9% over FY2018-20, according to CRISIL Report. As at March 31, 2021, the company had 186 on-roll employees engaged in R&D activities, representing approximately 15.4% of their total on-roll manpower, with 16 software engineers focused on R&D. Moreover, R&D capabilities are further strengthened by their digital simulations, testing and validation facilities located at their three R&D centers in India (Gurugram, Chennai and MM Nagar), which are approved by the GoI’s Department of Scientific and Industrial Research. They are equipped with modern facilities including, design software and an electric & endurance testing laboratory. The company’s R&D capabilities are further supported by the intellectual property rights that they have in connection with their business. The company holds assignment of license rights in relation to eight patents in USA. It has been granted one patent in USA, one patent in China and one patent in the United Kingdom and await 21 patent approvals in India.

Strong business development with customer centric approach:

As at March 31, 2021, the company has been awarded 58 programs from 27 customers across the product portfolio, from customers in India and overseas, where the start of production was either during FY21 or a period subsequent to FY21. The company has long-standing relationships of 15 years and more with 13 of their top 20 customers. Some of their key OEM customers include a Global OEM of EVs, a North American OEM of PVs and CVs, Ampere Vehicles, an Indian OEM of PVs, CVs and EVs, Ashok Leyland, CNH, Daimler, Escorts, Escorts Kubota, Geely, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Revolt Intellicorp, TAFE, Volvo Cars and Volvo Eicher. They also serve selected leading Tier 1 automotive system suppliers such as Carraro, Dana, Jing-Jin Electric, Linamar and Maschio. The company participates in a lengthy and rigorous vendor selection process with their customers, which can take up to two to three years from the date of issue of a request for quote, to qualify and secure business for development of a program.

Key Risk

  • The business is dependent on the performance of the automotive sector globally, including the key markets such as US, Europe, India and China. Any adverse changes in the conditions affecting these markets can adversely impact their business, results of operations and financial condition. 
  • Inability to protect any of their intellectual property, including misappropriation, infringement or passing off of their intellectual property rights or failure to obtain their patents or failure to keep their technical knowledge confidential could have impact on their business and in turn on results of operation or financial condition and cash flows. 
  • The business largely depends upon top ten customers and the loss of such customers or a significant reduction in purchases by such customers will have a significantly adverse impact on their business. The discontinuation or loss of business with respect to, or a lack of commercial success of, a particular vehicle model for which they are a significant supplier could adversely affect their business and results of operations.

* For complete list of risk factors kindly refer to the Sona Comstar Red Herring Prospectus.

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Contact Details of Sona BLW Precision Forgings Ltd IPO

Contact Information

Address

Sona Enclave Village, Begumpur Khatola
Sector 35, Gurugram - 122004


Phone: +91 0124 476 8200
Email: investor@sonacomstar.com
Website: http://www.sonacomstar.com/

Sona BLW Precision Forgings Ltd IPO Register

Address

KFintech Private Limited


Email: sonacomstar.ipo@kfintech.com
Website: https://karisma.kfintech.com/

Sona BLW Precision Forgings Ltd IPO Lead Manager

  • Credit Suisse Securities (India) Private Limited
  • J.P. Morgan India Private Limited
  • JM Financial Consultants Private Limited
  • Kotak Mahindra Capital Company Limited
  • Nomura Financial Advisory And Securities (India) Pvt Ltd

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