Blackstone-promoted Sona BLW Precision Forgings Ltd has received Securities and Exchange Board of India’s approval for its Rs 6,000 crore initial public offering.
The IPO will comprise of a fresh issuance of shares amounting to Rs 300 crore and Blackstone Group making an offer for sale worth around Rs 5,700 crore via an affiliate entity.
The news comes after Sona BLW, which operates the Sona Comstar brand, had filed its IPO draft papers in February.
The manufacturer and supplier of auto components to global electric vehicle (EV) markets will use the proceeds to repay Rs 225 crore in 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.
Kotak Mahindra Capital Company Ltd, Credit Suisse Securities Pvt Ltd, JPMorgan India, JM Financial Ltd and Nomura Financial Advisory and Securities are 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 Sona Comstar and Sona Autocomp 33.72%.
The PE firm is lining up IPOs for two other companies this year, VCCircle reported.
Currently, it is also in the process of rolling over its investment in IT firm Mphasis Ltd to three newer funds, which will in effect provide exit to limited partners of the older fund.