·
Price Band of Rs.
285 – Rs. 291 per equity share of face value of Rs. 10 each (“Equity Shares”)
·
Bid/Offer Opening
Date – Monday, June 14, 2021 and Bid/Offer Closing Date – Wednesday, June 16,
2021
·
Minimum Bid Lot
is 51 equity shares and in multiples of 51 equity shares thereafter
·
The Floor Price
is 28.50 times the face value of the Equity Shares and the Cap Price is 29.10
times the Face Value of the Equity Shares
Risks to
Investors: • The five Book Running Lead Managers associated with the Offer have
handled 23 public offers in the past three financial years out of which 8
offers closed below the offer price on listing date.• The Price/Earnings ratio
based on diluted EPS for Fiscal 2021 for the Company at the upper end of the
Price band is as high as 77.60 as compared to the average industry peer group
PE ratio of 73.08 (excluding PE ratio of one industry outlier).• Weighted
Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 35.0%.• Average
Cost of acquisition of Equity Shares for the Selling Shareholder namely
Singapore VII Topco III Pte. Ltd. Is ₹ 32.34 and the Offer Price at
the upper end of the Price Band is ₹ 291 per Equity Share.
Gurugram, June 9, 2021: Sona BLW Precision
Forgings Limited, one of India’s leading automotive technology companies, is primarily
engaged in designing, manufacturing and supplying highly engineered, mission
critical automotive systems and components to automotive OEMs. The
bid/offer period in relation to its initial public offering of Equity Shares
(the “Offer”) will open on Monday, June 14, 2021 and close on Wednesday,
June 16, 2021. The price band for the Offer has been determined at Rs. 285 – Rs.
291 per Equity Share. The Company and the Selling
Shareholder have, in consultation with the book running lead managers to the
Offer (the “BRLMs”), considered participation by Anchor Investors, which
participation shall be one Working Day prior to the bid/offer opening Date,
i.e. Friday, June 11, 2021.
The total Offer
size is up to Rs. 5,550 crores with a fresh issuance of equity shares,
aggregating up to Rs.300 crores and an offer for sale of equity shares
aggregating up to Rs. 5,250 crores, by the Selling Shareholder, namely, Singapore VII Topco III Pte. Ltd. The Company intends to utilize
the proceeds from the fresh issue to repay/prepay approximately Rs. 241.12
crores of its identified borrowings, besides general corporate purposes.
The company is a
leading supplier to the fast-growing global Electric Vehicle (EV) markets and
derived 13.8% revenue from the Battery EV market and 26.7% from the Micro
Hybrid / Hybrid market in FY21. Its global market share of BEV differential
assemblies in calendar year 2020 was 8.7%. The company is among the top ten
players globally in the differential bevel gear market and in the starter motor
market on the basis of respective volumes supplied to its end segments in
calendar year 2020 and has been gaining global market share across products. According
to the Ricardo Report, it serves 6 of the top 10 global PV OEMs, 3 out of top
10 global CV OEMs and 7 out of top 8 global tractor OEMs by volumes. The
company has strong R&D, engineering and technological capabilities in
precision forging, mechanical and electrical systems, as well as base and
application software development. It is diversified across geographies,
products, vehicle segments and customers. According to the Crisil Report, the
company has the highest operating EBITDA margin, PAT margin, ROCE and ROE in FY20
as compared to top 10 listed auto component manufacturers in India by market
capitalization and has consistently delivered more than 26% EBITDA margin and
more than 35% average ROE each year over FY19-21. Its operating income growth
over FY16-20 has exceeded the average of the same peer set.
The Offer is
being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules,
1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The
Offer is being made in accordance with Regulation 6(2) of the SEBI ICDR
Regulations, through the Book Building Process wherein not less than 75% of the Offer shall be available for
allocation to qualified institutional buyers, not more than 15% of the Offer
shall be available for allocation to non-institutional bidders and not more than
10% of the Offer shall be available for allocation to retail individual
bidders.
Kotak Mahindra
Capital Company Limited, Credit Suisse Securities (India) Private Limited, JM
Financial Limited, J.P. Morgan India Private Limited and
Nomura Financial Advisory and Securities (India) Private
Limited are the BRLMs to the Offer.
All capitalized
terms used herein and not specifically defined shall have the same meaning as
ascribed to them in the Red Herring Prospectus dated June 7, 2021 (“RHP”) filed with the Registrar of
Companies, NCT of Delhi and Haryana at New Delhi (“RoC”).
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