Blackstone-backed Sona Comstar’s ₹5,500 crore IPO could open next week, reports suggest

  • If successful, Sona Comstar’s IPO would be the largest ever for an automotive component maker in India.
  • The Blackstone-backed company supplies highly engineered, mission critical automotive components to OEMs of companies like Ford Motors, Daimler, Tata Motors, Ashok Leyland among others.
  • The electric vehicle boom has also boosted Sona Comstar’s business, contributing 13% to the company’s topline.

Sona Comstar, one of India’s leading automotive components makers, is gearing up to launch its ₹5,500 crore initial public offering (IPO) next week, according to media reports.

The Gurugram-based company had filed its draft red herring prospectus (DRHP) in February this year, with plans to raise ₹6,000 crore from the IPO. But
reports suggest that the offering has been reduced to ₹5,500 crore.

Sona Comstar is backed by US-based private equity giant Blackstone. Out of the ₹5,500 crore IPO, Blackstone Group affiliate Singapore VII Topco III would get ₹5,200 crore. The remaining ₹300 crore will be raised via a fresh issue of equity shares.
If successful, the Sona Comstar IPO would be the largest IPO by an auto component maker in India’s corporate history.

Also read:
IPO watch: List of upcoming public issues in 2021 – from Zomato to GoAir, over a dozen companies have filed for a listing

Reports suggest that the IPO could launch as soon as next week, when the markets are at an all-time high and investors would be interested in getting in a new company in its early days on the bourses.


Sona Comstar’s top and bottomline over the last four reporting periodsSona Comstar / Business Insider India / Flourish

Understanding Sona Comstar’s business

Sona Comstar is a supplier of highly engineered, mission critical automotive systems. It supplies components to original equipment manufacturers (OEM) of global auto giants like Ford Motors, Daimler and back home, to Tata Motors and Ashok Leyland, among others.

The boom in the electric…

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