About the Company:
Sona Comstar (Sona BLW Precision Forgings Ltd) is one of India’s leading automotive technology companies, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components.
Company manufactures products such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and nonelectrified powertrain segments.
Company has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India.
Company supplies its products to six out of the top 10 global PV OEMs, three out of the top 10 global CV OEMs (Original equipment manufacturer) and seven out of the top eight global tractor OEMs by volume.
Company is also one of the two largest exporters of starter motors from India.
Company’s global OEM Customer Portfolio includes:
- A Global OEM (Original equipment manufacturer) of EVs (Electric vehicles).
- A North American OEM of PVs and CVs.
- Ampere Vehicles.
- An Indian OEM of PVs, CVs and EVs.
- Ashok Leyland.
- Daimler.
- Jaguar Land Rover.
- John Deere.
- Mahindra and Mahindra, Mahindra Electric.
- Maruti Suzuki.
- Renault Nissan,
- Revolt Intellicorp.
- TAFE (Tractors and Farm Equipment Limited).
- Volvo Cars, Volvo Eicher.
Revenue Breakdown Across Geographic markets:
Company’s Manufacturing Facilities:
Sona Comstar has nine manufacturing and assembly plants across India, China, Mexico and USA, of which six are located in India.
Company’s facilities in India (Chennai), China, Mexico and USA manufacture conventional and micro-hybrid starter motors and BLDC traction motors and company’s plants in Gurugram, Manesar and Pune in India manufacture differential gears, differential assemblies and other gears.
While the facilities in India are manufacturing plants, the facilities in US, Mexico and China operate as satellite final assembly plants.
In India, company’s largest manufacturing facility is located in Chennai spanning across 43,992 sqm followed by facilities in Gurugram and Manesar with built-up areas of 19,587 sqm and 18,593 sqm, respectively.
Company’s Employees:
As at December 31, 2020, company had 3,037 employees, comprising of 1,167 on-roll and 1,870 off-roll employees, of which 2,965 are employed in India and 72 are employed outside India.
in calendar year 2020, we were among the top 10 players globally in the differential bevel gear market. We are also expected to be among the top 10 global starter motor suppliers based on our exposure to the PV segment in calendar year 2020
We have been gaining global market share across products to reach a share of approximately 5.0% for differential bevel gears, 3.0% for starter motors and 8.7% for BEV differential assemblies, in calendar year 2020,
Revenues from International Market:
Sona Comstar is a global supplier and derived 75.4% of income from sale of goods with end-use in the overseas markets, including 40.2% in North America, 25.3% in Europe and 5.3% in China and 24.6% of company’s income was derived from sale of goods with end-use in India, for the nine months ended December 31, 2020.
Company’s Competitors:
Management Team:
- Mr. Sunjay Kapur (Designation: Chairman and Non- Executive Director)
- Mr. Vivek Vikram Singh (Designation: Managing Director and Group Chief Executive Officer)
Objectives of the Issue:
Offer for Sale: (Rs.5250 cr )
- The Selling Shareholder will be entitled to the proceeds from the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 300 cr)
- Repayment/pre-payment, in full or part, of certain borrowings availed by the Company.
- General corporate purposes.
Positives for the Company:
One of the leading manufacturers and suppliers to global EV (Electric vehicles) markets.
- For the nine months ended December 31, 2020, approximately 72.8% of company’s income from sale of goods was derived from sale of goods to BEV (Battery electric vehicle), hybrid/ micro-hybrid and power source neutral products.
- Among the available propulsion technologies, BEV (Battery electric vehicle) has been the fastest growing at CAGR of approximately 46% between calendar years 2015 to 2020.
- The momentum for EVs (Electric vehicle) is being driven by the global recognition of the need for clean mobility, norms, targets and incentives provided by several governments to promote EV adoption, improving affordability and performance of EVs, rapid expansion of EV charging infrastructure and OEM plans for electrification.
One of the leading global companies and gaining market share, diversified across key automotive geographies, products, vehicle segments and customers.
- Company has nine manufacturing and assembly facilities, of which six are located in India and one each in China, Mexico and USA, as well as eight warehouses across India, USA, Germany and Belgium.
Company’s facilities are strategically located in order to serve and prioritize our customers needs.
Company is focused on diversification of our business through the growth of new and existing customer relationships and supplies systems and components to leading OEMs
and Tier 1 automotive suppliers in US, Europe, India and China.
Consistent financial performance with industry leading metrics.
- As compared to the publicly listed top 10 auto-component manufacturers in India by market capitalization, Sona Comstar has the highest in terms of operating EBITDA margin, PAT margin, ROCE and ROE.
- Company’s total operating income has grown at a CAGR of 10.9% from Fiscal 2016 to 2020 as compared to the average CAGR of 8.1% for the top 10 listed auto-component manufacturers in India by market capitalization, in the same period.
Capturing market opportunity in the growing EV (Electric vehicle) space.
- As part of growth strategy,company plans to increase the market share in both the Indian and overseas markets by catering specifically to EV OEMs, across three product groups (ie. Differential assemblies and differential gears, 48V BSG motor & EV traction motors)
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 625.9 | 702.5 | 1043.7 | 1568.6 |
| Net Profit | 77.5 | 173.1 | 360.3 | 215.1 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 14th June 2021 |
| Issue Closes on:. | 16th June 2021 |
| Issue Price | Rs.285 – 291 |
| Face Value | Rs. 10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 51 shares |
| Minimum Investment | Rs.14,841 |
| Issue Constitutes | 32.69% |
| Issue Size | Rs.5550 cr ($750 million) |
| Market Cap | Rs. 16,974 cr ($2.30 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,03,09,279 |
| Equity Shares Offered (OFS) | 18,04,12,370 |
| Total Equity Shares Offered (Fresh + OFS) | 19,07,21,650 |
| Equity Shares Prior to the Issue | 57,29,80,560 |
| Equity Shares after the Issue | 58,32,89,839 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 21st June 2021 |
| Initiation of Refunds | On or Before 22nd June 2021 |
| Credit of Equity Shares: | On or Before 23rd June 2021 |
| Listing Date: | On or Before 24th June 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day 1 | Day 2 | Day 3 |
|---|---|---|---|---|
| QIB | 5,84,21,052 | 0.02 | 0.14 | 3.46 |
| NII | 2,92,10,526 | 0.01 | 0.04 | 0.39 |
| Retail | 1,94,73,684 | 0.51 | 1.02 | 1.58 |
| Employee | ——– | — | —- | — |
| TOTAL | 10,71,05,262 | 0.11 | 0.27 | 2.28 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.75 | 77.6 | 16.5% | 22.75 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
Also Read:
| Shyam Metalics and Energy Ltd | Dodla Dairy Ltd |
| KIMS Hospitals | Paras Defence and Space Technologies Ltd |
| Company Contact Info: |
|---|
| Sona BLW Precision Forgings Ltd Sona Enclave Village Begumpur Khatola Sector 35, Gurugram Haryana – 122004, India Telephone: +91 0124 476 8200; E-mail: investor@sonacomstar.com; Website: www.sonacomstar.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium Tower-B, Plot 31 & 32 Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad, Telangana – 500032, India Tel: +91 40 6716 2222 E-mail: sonacomstar.ipo@kfintech.com Website: www.kfintech.com |
