Sona BLW share price surges 3% on raising funds worth Rs 2400 crore via QIP

Sona BLW share rises: Shares of Sona BLW Precision surged as much as 2.68 per cent to hit an intraday high of Rs 718.55 per share on Tuesday, September 10, 2024.

The Sona BLW share price rose after the company announced that it has successfully raised Rs 2,400 crore via qualified institutional placement (QIP).

Qualified institutional placements (QIPs) are a way for listed companies to raise capital without having to submit legal paperwork to market regulators. 

The proceeds from the QIP will further bolster the company’s capital structure to support its organic and inorganic growth strategies.  

"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,” said Vivek Vikram Singh, MD & Group CEO.

QIP contours

Sona BLW Qualified Institutional Placement (QIP) attracted major interest from institutional investors and sovereign wealth funds, leading to oversubscription by more than 5.5 times.

The QIP opened from September 4, 2024 and closed on September 9, 2024. 

During this period, Sona Comstar issued 34,782,608 equity shares to qualified institutional buyers (QIBs) at a price of Rs 690 per share, which includes a premium of Rs 680 per share.

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

Meanwhile, Jefferies India Private Limited and JM Financial Limited were Book Running Lead Managers (BRLMs) for the QIP offering. 

Additionally, 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. 

Sona BLW Precision Forgings Limited, known as Sona Comstar, is a leading global mobility technology company established in 1995 and headquartered in Gurugram.

The company operates manufacturing and assembly facilities, research and development (R&D) centres, and engineering capability centres in India, the USA, Serbia, Mexico, and China. 

Sona Comstar specialises in designing, manufacturing, and supplying critical automotive systems and components to OEMs, with a strong focus on driveline and traction motor solutions for the burgeoning electric vehicle (EV) market. 

The company boasts advanced R&D, engineering, and technological expertise in precision forging, mechanical and electrical systems, mmWave radar sensors, and software development, serving a diverse range of geographies, products, vehicle segments, and customers.

At 10:15 AM, shares of Sona BLW were trading 0.91 per cent higher at Rs 706.15. In comparison, BSE Sensex was trading 0/08 per cent lower at 81,496.39 levels.