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Sona BLW Precision Forgings Limited IPO - Date, Purpose Financial Performance, V
SONA BLW PRECISION FORGINGS LIMITED IPO
The Sona Blw Precision Forgings Ltd. is one of India’s leading automotive companies, designing, manufacturing, and supplying highly engineered auto components such as different assemblies, gears, conventional and micro-hybrid motors, BSG systems, EV traction motors (BLDC and PMSM). The company is also providing motor control units to automotive OEMs across the US, India, China & Europe for both electrified and non-electrified powertrain segments. The company was among the top 10 players globally in the differential gear market in the year CY 2020 as per the Ricardo Reports.
The company is a technology and innovation-driven company with a focus on strong research and development (“R&D”). It is one of the few companies globally having the ability to design high power density EV systems handling high torque requirements. The company is a global supplier and derived almost 75.4% of its income from the sale of goods with end-use in the foreign markets. The company has increased its sales to the EV market at a CAGR rate of 35.8% from FY 2018-2020.
As per the CRISIL report, the total operating income of the company has grown at a CAGR of 10.9% from FY 2016-2020 as compared to the average 8.1% CAGR of the top 10 listed auto parts manufacturers in India. The company had EBITDA margin of 28.2%, 28.9%, 26.7% and 29.2%, in the FY 2018,FY 2019, FY 2020 & 9-month period ended 31st December 2020. For the same periods, the average ROE or Return on Equity was 36.0%, 35.6%, 35.2%, and 35.9%, respectively.
The promoters of the company are Sunjay Kapur, Sona Autocomp Holding Pvt. Ltd., and Singapore VII Topco III PTE. Ltd.
Strengths of the company:
- The company is one of the leading suppliers & manufacturers to global electric vehicle markets
- One of the leading companies gaining market share and diversified across automotive geographies, vehicles,products & customers
- Strong R&D and technical competencies in both the software & hardware development
- Follows a customer-centric approach
- Delivered consistent financial performance with leading metrics
- Experienced senior management & board of directors
Purpose of the IPO:
- To make pre-payments or repayments of the borrowings availed by the company
- For meeting the general corporate purposes.
Financial Performance of the company:
| For the 9-month period ended 30th December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 1,029.62 | 1,043.76 | 702.50 | 625.92 |
| Total Expenses | 818.57 | 888 | 547.99 | 494.80 |
| Profit After Tax | 155.46 | 360.34 | 100.11 | 86.13 |
| Total Assets | 2,112.04 | 1,850.65 | 1,632.55 | 1,483.77 |
*All the values are in crores and as per RHP.
Valuation of the Company:
| For the 9-month period ended 30th December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | 2.71 | 7.06 | 5.20 | 2.33 |
| Diluted Earnings per Share (EPS) | 2.71 | 7.06 | 5.20 | 2.33 |
| Return on Net Worth (%) | 12.1% | 30.6% | 99.5% | 43,742.4% |
| Net Assets Value per Equity share | 22.49 | 23.07 | 5.22 | 0.01 |
*As per RHP.
SONA BLW PRECISION FORGINGS LIMITED IPO DRHP
IPO details:
| Face Value | ₹10 per equity share |
| Market Lot | 51 Shares |
| Minimum Order Quantity | 51 Shares |
| Price Band | ₹285 - ₹291 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹5,550 Crores |
| Fresh Issue | ₹300 Crores |
| Offer for Sale | ₹5,250 Crores |
| Listing | NSE, BSE |
Important IPO dates:
| Open Date | 14th June 2021 |
| Close Date | 16th June 2021 |
| Basis of Allotment Date | 21st June 2021 |
| Initiation of Refunds | 22nd June 2021 |
| The credit of shares to Demat Account | 23rd June 2021 |
| Listing Date | 24th June 2021 |
Allocation Quota:
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not less than 75% |
| Non- Institutional Buyers (NIIs) | Not more than 15% |
| Retail Investors | Not more than 10% |
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