Sona Comstar to Raise Rs 6,000 Cr Through India's Largest Auto Component Listing

Strategic Insights -

Indian auto component maker Sona Comstar, owned by Blackstone Group Inc, is set to raise approximately Rs 6,000 crore ($825 million) through an initial public offering (IPO). This will be the largest listing by an Indian auto components company in the country. The company's valuation will be $3 billion (Rs 21,747 crore) in this proposed IPO, with Blackstone selling a part of its 66% stake in the company. The IPO is expected to be filed with regulators as early as Tuesday, with investment banks Credit Suisse, Nomura, JP Morgan, JM Financial, and Kotak Mahindra Capital as book runners.

Key Takeaways:

  • Sona Comstar is set to raise approximately Rs 6,000 crore ($825 million) through an initial public offering (IPO), the largest listing by an Indian auto components company.
  • The company's valuation will be $3 billion (Rs 21,747 crore) in this proposed IPO.
  • Blackstone, which currently owns 66% of the company, will sell a part of its stake in this proposed IPO.
  • Sunjay Kapur, chairman of Sona Comstar, holds about 34% stake in the company.
  • The company has estimated revenue of Rs 2,400 crore and an EBITDA of Rs 700 crore for FY22.
  • Sona Comstar has nine manufacturing and assembly facilities across India, China, Mexico, and USA, with six located in India.
  • In 2020, Sona Comstar was among the top 10 players globally in the Differential Bevel Gear market and expected to be among the top 10 global Starter Motor suppliers to the Passenger Vehicle Industry.
  • Sona Comstar benefits from the trend of electrification, with about 13% revenue derivation from sales to the pure play Battery EV (BEV) market.
  • This will be the second largest proposed IPO by a Blackstone-owned company in 2021, after Aadhar Housing Finance Ltd.

Statistics:

  • Rs 6,000 crore (approximately $825 million) - the amount Sona Comstar is set to raise through the IPO.
  • $3 billion (Rs 21,747 crore) - the valuation of Sona Comstar in this proposed IPO.
  • 66% - Blackstone's current stake in Sona Comstar.
  • 34% - Sunjay Kapur's stake in Sona Comstar.
  • Rs 2,400 crore - Sona Comstar's estimated revenue for FY22.
  • Rs 700 crore - Sona Comstar's EBITDA for FY22.
  • 13% - the revenue derivation from sales to the pure play Battery EV (BEV) market.

Sources:

  • "Sona Comstar to raise Rs 6,000 cr through India's largest auto component listing" - Times of India.
  • Sona Comstar website: "Company Overview".
  • Sona Comstar website: "Investor Presentation".
  • Aadhar Housing Finance Ltd DRHP filing with SEBI.