Sona BLW Precision Forgings Rise Over 6% A Day After Block Deal; Know Why

Shares of Sona BLW Precision Forgings (Sona Comstar) rallied 8 per cent to Rs 436.25 in Tuesday’s intra-day commerce on BSE, a day after the American non-public fairness agency Blackstone offered its complete 20.5 per cent stake for about Rs 4,916 crore by way of a block deal.

Private fairness agency Blackstone, which held a stake in Sona BLW by way of an entity referred to as Singapore VII Topco III PTE Ltd, offered practically 12 crore shares within the firm for Rs 4,917 crore on Monday within the open market at a median worth of Rs 410.04 apiece.

The scrip began buying and selling greater on Tuesday’s intraday commerce after international traders, mutual funds, sovereign wealth funds and insurance coverage corporations purchased Blackstone’s 20.5 per cent stake.

Some of the marquee consumers on this deal had been the Government of Singapore, Societe Generale, Fidelity Asian Values Plc, BNP Paribas Arbitrage and the Monetary Authority of Singapore. Among mutual funds who purchased stake included HDFC Mutual Fund and ICICI Prudential.

Before this transaction, Aureus Investment and Blackstone held 33 per cent and 20.5 per cent, respectively, of Sona Comstar.

Promoters and promoter teams maintain a 53.53 per cent stake within the firm, whereas 46.47 per cent rests with the general public. Among the general public shareholders, mutual funds personal about 21.78 per cent, and international traders have a stake of 11.06 per cent. Both promoters and FIIs have diminished their shareholding marginally within the December quarter.

Sona Comstar was fashioned by the merger of Sona BLW Precision Forgings Ltd. and Comstar Automotive Technologies Pvt. Ltd. in 2019. Sona Comstar is a traction motor and motor-controller provider to electrical two-wheelers.

Sona Comstar was fashioned by the merger of Sona BLW Precision Forgings Ltd. and Comstar Automotive Technologies Pvt. Ltd. in 2019. Sona Comstar is a traction motor and motor-controller provider to electrical two-wheelers.

Brokerage agency CLSA maintained its purchase score on the inventory however lower its worth goal to Rs 529 from Rs 566 earlier. The agency mentioned that Sona BLW has a really sturdy order e book and their EBITDA margin might enhance led by the PLI scheme and product combine. The word additional added that the exit of Blackstone won’t change their thesis on the corporate.

Sona BLW reported its highest ever quarterly income and web revenue within the December interval.

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