Sona Comstar
IPO Size
`5,550 Cr
Price Band
`285-291 Per Share
Minimum Lot Size
51 Share
Face Value
`10 Per Share
Employee Discount
`15 Per Share
Retail Allocation
10%
Issue Open Date
14 June, 21
Issue Close Date
16 June, 21
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
About the Company:
The journey of the company started in 1995 as Sona Okegawa Precision Forgings, which was a 75:25 joint venture between the Sona Group and Mitsubishi Materials and the pioneer of warm forged near net-shaped gears manufacturing technology. The Sona Group, after acquiring Thyssen Krupp’s forging business (which acquired BLW, the inventor of warm forging) and 25% stake of Mitsubishi, renamed the company to Sona BLW Precision Forgings, which became the largest manufacturer of forged gears. In 2019, Sona BLW acquired Comstar Automotive, a leading designer and manufacturer of starting and charging systems for automobiles, and created a new identity.
The whole journey of the company is filled with expansion of their manufacturing plants acquisitions of associated companies to achieve economies of scale. The company has manufacturing plants in Chennai, Pune, Gurgaon and Chakan. Globally, the leading auto ancillary has manufacturing plants in USA, China and Mexico. The company supplies its products across the countries such as India, US, Europe, and China.
Outstanding Litigation:
| S.No. | 1 - Company | 2 - Directors | 3 - Promoters | |||
| Entity Name | By the Company | Against the Company | By the Sponser Group | Against the Sponsor Group | By the Sponser | Against the Sponser |
| Criminal cases | - | - | - | - | - | - |
| Material civil cases | 2 | - | - | - | - | - |
| Taxation matters | - | 6 | - | 2 | - | - |
| Regulatory Procedings | - | - | - | - | - | - |
| Amt. (In Million Rs.) | 39.50 | 103.60 | - | Non-Quantifiable | - | - |
Financial Statements:
| Income Statement (In Millions) | FY21 | FY20 | FY19 | |
| Gross Operating Income | 15686.41 | 12276.74 | 14335.01 | |
| Cost of Employee & Inventory | 7927.59 | 6361.65 | 7023.07 | |
| Other Expenses | 3325.25 | 2585.71 | 3131.7 | |
| EBITDA | 4433.57 | 3329.38 | 4180.24 | |
| Depreciation | 969.4 | 781.85 | 722.45 | |
| Interest | 325.15 | 268.75 | 197.86 | |
| Profit Before Tax | 3139.02 | 2278.78 | 3259.93 | |
| Exceptional Items | 139.06 | |||
| Tax | 848.31 | 61.56 | 1131.18 | |
| Profit After Tax | 2151.65 | 2217.22 | 2128.75 | |
The promoters of the company are Sunjay Kapur, Sona Autocomp Holdings Private Limited and Singapore VII Topco III Pte. Ltd
Despite the resurgence in Covid-19 cases, global economy is seeing gradual signs of recovery in automobile industry. The rising income of the Indian population and shift to comfort comes first psychology will keep the demand of auto industry intact. In the listed space, the company will face tough competition from Minda Corp., Motherson Sumi, Endurance Technologies and Bosch.
The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 18,04,12,371 equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of 0.18 billion equity Shares aggregating up to ₹5,250 Cr (at an upper price band of Rs. 291).
The company has planned to raise fresh capital comprising an aggregate of 1,03,09,278 equity shares having Face Value ₹10 aggregating up to Rs. 300 Cr at the upper price band of Rs. 291. The net proceeds will be utilized will be utilized for repayment of company’s debt amounting at Rs. 225 crores while the rest will be utilized general corporate purpose.