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Blackstone-backed auto parts maker Sona BLW files for float
Photo Credit: VCCircle

Blackstone-promoted Sona BLW Precision Forgings Ltd (trade name Sona Comstar), an auto parts firm, has filed for an initial public offering worth Rs 6,000 crore.

The offering will comprise a fresh issue worth Rs 300 crore and an offer for sale up to Rs 5,700 crore by American private equity giant Blackstone.

Up to 75% of the IPO has been reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

The manufacturer and supplier of auto components to global electric vehicle (EV) markets will use the proceeds to repay/prepay Rs 225 crore of its borrowings besides general corporate purposes.

Sona Comstar makes parts such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units. 

It supplies them to original equipment makers (OEMs) across the US, Europe, India and China.

The firm 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 the country. 

Its OEM customers include Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.

A successful IPO will see Gurugram-headquartered Sona Comstar join listed peers such as Motherson Sumi, Sundaram-Clayton, Varroc Engineering, Bosch, Bharat Forge, Mahindra CIE, Endurance Technologies, Minda Industries, Sundram Fasteners, and WABCO India.

The company has roped in Kotak Mahindra Capital Company Ltd, Credit Suisse Securities Pvt Ltd, JPMorgan India, JM Financial Ltd and Nomura Financial Advisory and Securities as managers for the issue.

Blackstone acquired Comstar Automotive Technologies in 2017. The next year it bought Sona BLW Precision Forgings Ltd, merging the business with Comstar to form Sona Comstar. 

Blackstone holds 66.28% stake in the company and Sona Autocomp 33.72%. 

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