The public issue will include a fresh issue of shares amounting to Rs 300 crore and an offer for sale aggregating to up to Rs 5,700 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of The Blackstone Group Inc.
The portion reserved for qualified institutional buyers will be up to 75 per cent of the offer. Non-institutional investors will have up to 15 per cent of the portion reserved, while up to 10 per cent will be reserved for the retail investors.
As stated in the DRHP, the company intends to utilise the proceeds from the fresh issue to repay/prepay Rs 225 crore of its borrowings besides general corporate purposes.
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 to automotive OEMs across the US, Europe, India and China, for both electrified and non-electrified powertrain segments.
Some of its key OEM customers include a global OEM of EVs, a North American OEM of passenger vehicles and commercial vehicles,
Between FY16-20, the company has seen 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.
Kotak Mahindra Capital Company Ltd, Credit Suisse Securities Pvt Ltd, JP Morgan India Pvt Ltd, JM Financial Ltd and Nomura Financial Advisory and Securities Pvt Ltd are the BRLMS to the issue.