- 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
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.
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…