Connect with us

Hi, what are you looking for?

Share Market

Sona Comstar extends listing gains; stock skyrockets 20% to hit upper circuit

Financial Express - Business News, Stock Market News

Sona Comstar Rs 5550-crore IPO opens promoters to cut stake should investors subscribe or not know hereSona Comstar shares made their stock market debut today.

Sona BLW Precision Forgings (Sona Comstar) shares surged as much as 24% over the IPO price after an hour of trade on listing day. The share price of Sona Comstar opened for trading at Rs 302 apiece, up 3.92% or Rs 11.4 premium over the IPO price of Rs 291 per share. Soon the stock was seen surging 24% higher than the Issue price, quoting a price of Rs 362.85 per share. Sona Comstar entered the market earlier this month to raise Rs 5,550 crore through a mix of fresh issuance of equity shares and offer for sale by existing shareholders. The company is a diversified manufacturer of automotive components and systems with capabilities across drivetrain parts and motor electronics. On listing the stock had a market capitalization of more than Rs 17,000 crore. 

From Sona Comstar’s Rs 5,550 crore, more than 94% was an offer for sale by existing shareholder, including Singapore VII Topco, a subsidiary of private equity firm Blackstone. Post issue, promoter shareholding will drop t0 67.3% from 100% while public shareholding will increase from zero to 32.7%. Sona BLW’s IPO was subscribed 2.28 times by investors. Qualified institutional buyers (QIB) bid for issue 3.46 times while retail investors subscribed 1.58 times the portion reserved for them. Non-institutional investors (NII) failed to fully subscribe to the quota reserved for them. 

Soan Comstar is a key player in the growing global electric vehicle market. “Sona Comstar stands apart from much of the rest of the auto component universe by providing a strong play on the upcoming mega opportunity of electrification. As of FY21, the company obtained ~40% of revenues from ‘electrified’ platforms, including ~14% from pure battery EVs (BEV),” brokerage and research firm ICICI Direct said in a pre-IPO note. 

Brokerage firm Motilal Oswal has a positive long term view on the stock. “We like SBPFL given its presence in the fast-growing global EV market, diversified portfolio across categories and robust financials,” they said earlier in a note. “Though the valuation appears fully priced in, given its thrust in fast-evolving EV space both in India and globally, the market would like to give premium to such emerging growth story,” they added. The production of battery electric vehicles across the globe is expected to grow at 36% CAGR between 2020 and 2025, aiding the positive view voiced by analysts.

The company will join peers such as Motherson Sumi Systems, Bosch, Bharat Forge, Varroc Engineering, and Minda Industries among others on the bourses.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...