Sona BLW Precision Forgings Ltd Share Price – NSE /  BSE

Auto Ancillaries, Small Cap

Sona BLW Precision Forgings has completed its Rs 2,400 crore Qualified Institutions Placement. The issue garnered strong interest from institutional investors and sovereign wealth funds, resulting in over 5.5 times subscriptions, underscoring investors' confidence in the Company's strategic vision and growth strategies.

The QIP opened on 4 September 2024 and closed on 9 September 2024.

Sona Comstar issued 34,782,608 equity shares to qualified institutional buyers (QIBs) at an issue price of Rs 690 per equity share, including a premium of Rs 680 per equity share.

Some of the largest investment managers, such as SBI Mutual Fund, ICICI Prudential Mutual Fund, White Oak, Goldman Sachs Asset Management, Axis Mutual Fund, Aditya Birla Mutual Fund, Norges, BNP Paribas Fund, Fidelity International, Franklin Templeton and Fidelity Management & Research, amongst others, participated in the QIP, a positive reflection on the company's long-term growth prospects.

The proceeds from the QIP will further bolster the company's capital structure to support its organic and inorganic growth strategies.

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The company's board authorized and declared the opening of the issue on Wednesday, 4 September 2024.

The floor price of Rs 699.01 is at a discount of 3.22% to the previous day's closing price of Rs 722.30 on the BSE.

The company may offer a discount of not more than 5% on the floor price so calculated for the issue.

The issue price will be determined by the company in consultation with the book running lead manager appointed for the Issue.

Sona BLW Precision Forgings is one of the world's leading automotive technology companies. The company has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico and China. It is primarily engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components to automotive OEMs.

The company’s consolidated net profit increased 26.7% to Rs 141.95 on 21.8% rise in revenue from operations to Rs 891.18 crore in Q1 FY25 over Q1 FY24.

The scrip rose 0.30% to currently trade at Rs 724.45 on the BSE.

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Net profit of Sona BLW Precision Forgings rose 26.70% to Rs 141.95 crore in the quarter ended June 2024 as against Rs 112.04 crore during the previous quarter ended June 2023. Sales rose 21.85% to Rs 891.18 crore in the quarter ended June 2024 as against Rs 731.38 crore during the previous quarter ended June 2023.

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The Board of Sona BLW Precision Forgings at its meeting held on 24 July 2024 has approved the investment upto USD 10 millioneither in the formof equity and/or debt in one or more tranches as decided by the Authorized Officials of the Company, in order to meet the capex requirements in SONA BLW EDRIVE MEXICANA, S.A.P.I. DE C.V. a wholly owned subsidiary of the Company in Mexico.

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