Sona BLW IPO: GMP, Issue Size, Issue Price

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Sona BLW IPO is all set to make a debut in the stock market with an issue size of 5550 Cr. Sona BLW Precision Forgings Limited is one of the leading automotive technology companies in India.

Sona BLW IPO -Overview    

Sona BLW Precision Forgings Limited IPO Issue Date           14-16 June 2021          
Sona BLW Precision Forgings Limited IPO Opening Date           14 July 2021         
Sona BLW Precision Forgings Limited IPO Face Value           INR 10 per share           
Sona BLW Precision Forgings Limited IPO Price           INR 291 per share          
Sona BLW Precision Forgings Limited IPO Lot Size           51 Shares          
Issue Size           5,550.00 Cr          
Offer for sale           5,250.00   Cr          
Issue Type           Book built Issue IPO           
Listing At           BSE, NSE          
QIB Shares Offered             3.46 times          
NII (HNI) Shares           0.39 times          
Company Promoters           Sunjay Kapur, Sona Autocomp Holdings Private Limited and Singapore VII Topco III Pte. Ltd are the company promoters. 
Prudent Corporate Advisory Services IPO Details

Sona BLW IPO-Tentative Dates           

Sona BLW Precision Forgings Limited IPO opening date           14 June 2021          
Sona BLW Precision Forgings Limited IPO closing date           16 June 2021          
Basis of Allotment           21 June 2021          
Initiation of Refunds           22 June 2021              
The credit of Shares to Demat          23 June 2021           
Sona BLW Precision Forgings Limited IPO Listing Date           24 June 2021          

Sona BLW IPO – Industry Overview.          

The Indian PV market is focused on the domestic market, with over 85% of demand stemming from the domestic market in Fiscal 2021. The ratio of exports-to-production for the industry has been declining from 19% in Fiscal 2016 to 15% in Fiscal 2021. This can be attributed to muted exports due to a slowdown in the global automobile industry as well as major OEMs focusing on serving fast-growing domestic markets over foreign markets.  In Fiscal 2020, this share had gone up to approximately 20% as OEMs enhance their focus on export markets. Stagnating domestic traction in the past three years has resulted in foreign automobile manufacturers such as Ford, General Motors (GM), and Volkswagen (VW) increasing their focus on exports, thereby improving utilization by using spare capacity and boosting revenue. These players are developing India as an export hub, as evidenced by the consistent increase in the proportion of exports to their total production. 

Sona BLW IPO – Company Overview     

Sona BLW Precision Forgings 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 and systems, EV traction motors (BLDC and MSM) and motor control units to automotive  OEM across  US, Europe, India, and China, for both electrified and non-electrified powertrain segments. According to the Ricardo Report, in the calendar year 2020, it is also among the top 10 players globally in the differential bevel gear market. Sona BLW is also expected to be among the top 10 global starter motor suppliers based on the exposure to the PV segment in the calendar year 2020, according to the Ricardo Report. Sona BLW have been gaining global market share across products to reach a share of approximately 5.0% for differential bevel gears, 3.0% for starter motors, and 8.7% for BEV differential assemblies, in the calendar year 2020, according to the Ricardo Report. 

 Sona BLW IPO -Objectives           

  • Repayment or prepayment of company’s borrowings fully or partially. 
  • General corporate purposes. 

Sona BLW IPO – Financial Statements          

Particulars          31-Dec-20  31-Mar-20        31-Mar-19        
Total Assets          21,748.30 18,506.82 16,325.57 
Total Revenue          15,686.41 10,437.65 7,025.01 
Profit After Tax          2,151.65 3,603.43 1,731.80 

Sona BLW IPO – Strengths          

  • One of the leading manufacturers and suppliers to the global EV market. 
  • Large product portfolio. 
  • Diversified across automotive geographies, vehicle segments, and customers. 
  • Strong Research & Development (R&D) capabilities. 
  • Consistent financial performance track record. 

Sona BLW IPO- Weakness                               

  • Highly competitive market.   

Company Contact Information

Sona BLW Precision Forgings Limited
Sona Enclave Village, Begumpur Khatola
Sector 35, Gurugram – 122004

Phone: +91 0124 476 8200

Sona Comstar IPO Registrar

Phone: 04067162222, 04079611000

Sona Comstar IPO Lead Manager(s)

  1. Credit Suisse Securities (India) Private Limited (Past IPO Performance)
  2. J.P. Morgan India Private Limited (Past IPO Performance)
  3. JM Financial Limited (Past IPO Performance)
  4. Kotak Mahindra Capital Company Limited (Past IPO Performance)
  5. Nomura Financial Advisory And Securities (India) Pvt Ltd (Past IPO Performance)


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