Sona Comstar IPO

Sona BLW Precision Forgings Ltd.

₹14,535 /51 sharesMinimum Investment

Sona Comstar IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
14 Jun ‘21 - 16 Jun ‘21₹14,53551₹285 - ₹291
Issue SizeIPO Doc
5550.00Cr
RHP PDF

Subscription Status As on 16 Jun '21, 5:00 PM

  • Retail Individual Investor
    1.57x
  • Non-Institutional Investor
    0.39x
  • Qualified Institutional Buyers
    3.46x

About Sona Comstar

Sona Comstar is an automotive technology company. It manufactures and supplies engineered items, mission automotive systems and components such as electrical vehicle (EV) traction motors, differential gears and more. Sona Comstar develops mechanical and electrical hardware systems. The company derives around 75% of its income from the overseas sale of its goods. The proceeds from the offer will be used to pre-pay/repay borrowings and for general corporate purposes.;
Parent Organisation
Sona BLW Precision Forgings Ltd.
Founded
1995
Managing Director
Vivek Vikram Singh
Sona Comstar IPO review - Business, financials, IPO date, price band, lot size, latest news

Strengths & Risks

  • Nine manufacturing and assembly facilities, six are located in India and one each in China, Mexico and the USA. The company also has eight warehouses across India, the USA, Germany and Belgium.
  • Strong R&D capabilities.Aggregate expenditure on R&D of Rs 156.35 crores over the last three financial years.
  • Long-standing relationships of 15 years and more with 13 of the top 20 customers.
  • A few customers include Ashok Leyland, Daimler, Escorts, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Maruti Suzuki, Renault Nissan, Revolt Intellicorp and more.
  • Dependant on the global performance of the automotive segment.
  • Negative publicity about the brand or inability to protect intellectual property can impact financial condition.
  • Business largely depends upon the top ten customers, and the loss of such customers will have a significant impact.
  • May not receive all the revenue expected from new and incremental business and does not have firm commitment agreements with customers.
  • COVID-19 pandemic, or a similar public health threat, could adversely affect business and financial condition.
  • Dependant on the success of R&D and the failure to develop new products could affect business.
  • Pricing pressure from customers can affect business.
  • Growth of the electric vehicle market depends on the development of the necessary charging infrastructure.
  • Geographical concentration of manufacturing facilities may restrict operations.
  • Disruption in the raw material supply could impact our production and increase costs.
  • Significant power, water and fuel requirements and any could increase production costs.
  • Disruption in IT infrastructure could impact business and operations.
  • Shutdown of manufacturing facilities caused by unforeseen events may reduce sales.
  • Regular work with hazardous materials can be dangerous, causing injuries to people or property.
  • Failure to obtain licences or permits can affect operations.
  • Substantial capital expenditure requirements and failure to obtain sufficient capex impacts operations.

Financials

*All values are in Rs. Cr
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Application details

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