Sona BLW Precision Forgings IPO:Issue Date, Price, Lot Size, Review & Details -Motilal Oswal

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Sona BLW Precision Forgings Ltd IPO - Sona BLW Precision Forgings Ltd IPO Date, Share Price And News

14 Jul 2023

Sona BLW Precision Forgings Ltd is set to raise INR 6000 crores through an Initial Public Offering. The company filed its red herring prospectus with SEBI in February 2021. Sona Comstar is backed by PE major Blackstone and Sona Group. The company is a leading automotive parts manufacturer and supplier to domestic and global markets. They supply highly-engineered, mission-critical automotive systems and components to auto original equipment manufacturers (OEMs)

It operates a total of 9 manufacturing and assembly facilities out of which 6 are based out of India and one each out of China, Mexico, and the USA respectively. It has 8 warehouses dispersed across India, the USE, Germany, and Belgium. It also supplies automotive parts to Electric Vehicle markets.

The company has announced a fresh issue of INR 300 crores and an offer for sale of INR 5700 crores for shareholders Singapore VII Topco III Pte Ltd, an affiliate of The Blackstone Group Inc. As of December, Singapore VII Topco III Pte held a 66.28% stake in Sona Comstar, while the rest 33.72% was held by Sona Autocomp Holding Pvt. Ltd.

In FY20, the company reported a revenue of INR 1,037.98 crore, up from ₹699.22 crores in the previous year, and net profit of ₹360.34 crores, up from ₹100.11 crores a year earlier.

Sona BLW Precision Forgings IPO Details

Fresh Issue

The company is making a fresh issue of shares to the tune of INR 300 crores.

Offer for Sale

An offer for sale aggregating to INR 5700 crores for selling shareholder Singapore VII Topco III Pte Ltd.

Sona BLW Precision Forgings IPO Share Price

The share price of Sona BLW Precision Forgings is 285.

BLW Precision Forgings IPO Date

The BLW Precision Forgings IPO opening date is 14th june 2021 and the closing date is 16th june 2021.

Issue objectives

This new IPO’s issue objectives for the fresh issue are repayment and prepayment of debt amount to INR 225 crores apart from other general corporate purposes. The proceed from the sale will go directly to the selling shareholder, in this case, Singapore VII Topco III Pte. Discover the latest updates and insights on the upcoming IPOs 2023!

How to invest in an IPO

To buy shares of an IPO you must open a Demat account and trading account to be able to invest. Thanks to online trading platforms and SEBI’s efforts to take IPOs online, enable UPI transactions, etc. you can invest in an IPO in a few simple steps from the comfort of your home.

Before commencing online trading, always remember to open a Demat Account and Trading Account with a trusted and reliable financial partner.

If you already have an existing account, you can start your online trading and invest in the upcoming IPO's.

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What are the Benefits of Commodity Trading?

On opening a commodity trading account linked to a Demat account, you can get a load of benefits when you engage in this kind of trading. Commodity trading is a super channel for any investor who wants to hike up their pool of finances. Below mentioned, are some of the advantages of commodity trading whether trading commodities on the MCX or any other exchange:

Diversification

For a financial portfolio to be balanced, weighing potential risks, it has to be diversified in a way that assets are allocated equally. Commodity trading is a perfect way to diversify asset allocation, reducing the risk factor in a portfolio.

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The stock market and exchanges are typically regulated by price shifts that are global in nature. This eliminates the risk of any manipulation in price that may occur internally.

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The prices of commodities can prove to be a safeguard against inflation. In contrast to any other investment instrument, commodity prices move in a way that is the same as inflation. This is because inflation is the result of high prices of commodities in the first place. Hence, commodity prices can be predictable in a sense. Furthermore, the prices of commodities are bound to rise during high inflation periods in the nation and profits may be earned thereof.

What are capital bonds?

Capital bonds, also known as 54EC bonds, are debt instruments that give you a fixed return on your investment. If you sell a house property and earn capital gains thereon, you can enjoy tax exemption by investing in these bonds. When you invest in a capital bond, you get to earn interest at a fixed rate. The interest is calculated on the face value of the bond. And it is paid out at regular intervals. Once the bond matures, you will have to redeem the instrument.

Sectorial performance question

How do I Invest in capital gain bonds?

Capital gain bonds are issued by REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) and NHAI (National Highways Authority of India) and IRFC (Indian Railways Finance Corporation Limited). They are not listed on any exchange. So, if you want to invest in capital bonds, you will have to buy them directly from the issuer - either in the physical form or in the demat form. You can invest up to Rs. 50 lakh in these bonds.

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