Sona BLW Precision: Sona Comstar shares in focus as co raises Rs 2,400 crore via QIP

Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) will be in focus on Tuesday morning after the mobility technology company informed stock exchanges that it has completed its Rs 2,400 crore qualified institutions placement (QIP). The isse received 5.5 times subscription and saw strong interest from institutional investors and sovereign wealth funds. The proceeds from the issue would bolster the company’s capital structure and support its organic and inorganic growth strategies.

Sona Comstar said the QIP, which opened on September 4, concluded on Monday, September 9. Sona BLW Precision Forgings issued 34,782,608 equity shares to qualified institutional buyers (QIBs) at an issue price of Rs 690 per equity share, including a premium of Rs 680 per equity share.

The stock closed at Rs 699.75 on Monday, down 2.62 per cent.

Investment managers such as ICICI Prudential Mutual Fund, SBI Mutual Fund, Goldman Sachs Asset Management, White Oak, Axis Mutual Fund, Norges, BNP Paribas Fund, Aditya Birla Mutual Fund, Fidelity International, Franklin Templeton and Fidelity Management & Research, amongst others, participated in the QIP.

MD & Group CEO Vivek Vikram Singh 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.”

Jefferies India and JM Financial were book running lead managers (BRLMs) for the QIP offering. Shardul Amarchand Mangaldas & Co acted as the Legal Counsel for Sona Comstar, while AZB & Partners and Linklaters Singapore Pte. Ltd acted as the Legal Counsels for the BRLMs.