Sona BLW Precision Forgings Ltd Raises ₹2,400 Crore in Successful QIP

On September 9, 2024, Sona BLW Precision Forgings Ltd, commonly known as Sona Comstar, successfully concluded its ₹2,400 crore Qualified Institutions Placement (QIP). The offering attracted strong interest from institutional investors and sovereign wealth funds, with subscriptions exceeding 5.5 times the issue size. This overwhelming response highlights investor confidence in the company’s strategic vision and future growth prospects.

The QIP, which opened on September 4, 2024, and closed on September 9, 2024, saw the issuance of 34,782,608 equity shares to qualified institutional buyers (QIBs) at ₹690 per share, including a premium of ₹680. The offering drew participation from several prominent investors, including 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.

Proceeds from the QIP will strengthen Sona Comstar’s capital structure, allowing the company to fund its organic and inorganic growth initiatives. The raised capital will support the company’s expansion plans, enabling it to explore new business opportunities and further solidify its market position.

JM Financial Limited and Jefferies India Private Limited acted as the Book Running Lead Managers (BRLMs) for the offering, while Shardul Amarchand Mangaldas & Co. served as Legal Counsel for Sona Comstar. AZB & Partners and Linklaters Singapore Pte. Ltd provided legal advisory services to the BRLMs. This QIP marks a major step in Sona Comstar’s growth trajectory.

Mr Vivek Vikram Singh, MD and Group CEO, said, “We are overwhelmed with the strong response to our QIP. We thank our existing shareholders for reaffirming their trust and welcome several new shareholders. We are committed to creating value for all who have entrusted their assets to us and are unwavering in our efforts. We will use the QIP proceeds to augment the company’s capital to pursue our growth ambitions.” 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.