Sona BLW climbs after tieup with Israel's IRP Nexus Group

Sona BLW Precision Forgings rose 2.14% to Rs 573.95 after the company announced technical collaboration with Israel's IRP Nexus Group to develop, magnet-less drive motor and the matching controller for 2 and 3 wheelers.

The company's wholly-owned subsidiary Sona Comstar eDrive has executed a collaboration agreement with IRP Nexus Group to develop, manufacture, and supply a magnet-less drive motor and the matching controller for performance two-wheelers and three-wheelers for the global market. The term of the agreement is for seven years.

The system envisages an innovative motor-plus-controller combination that does not use rare earth elements like neodymium, besides offering high efficiency and low cost to manufacturers of electric two-and three-wheelers.

The project is expected to mitigate the risk stemming from dependency on limited and unreliable sources. IRP will license its technology to Sona Comstar for manufacturing of the System exclusively in India.

Sona Comstar will have non-exclusive rights to sell and distribute the system globally and it will pay IRP onetime license fee and royalty during the term of the agreement.

Israel-based IRP specializes in high-performance electric powertrain systems for a variety of e-mobility platforms.

On a consolidated basis, Sona BLW Precision Forgings' net profit jumped 37.7% to Rs 82.23 crore on 7.2% decline in net sales to Rs 500.75 crore in Q1 FY22 over Q4 FY21.

Sona BLW Precision Forgings (Sona Comstar) manufactures various components like differential assemblies, differential gears, conventional and micro-hybrid starter motors and has nine plants spread across India, China, Mexico, and the US.

Shares of Sona BLW Precision entered the bourses on 24 June 2021. The scrip was listed at a price of Rs 302.40 per share, at a premium of 3.92% as compared to issue price. The initial public offer (IPO) of Sona BLW Precision Forgings was subscribed 2.28 times. The issue opened for bidding on 14 June 2021, and closed on 16 June 2021. The price band for the IPO was set at Rs 285-291 per share.

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