Sona Comstar
Mainboard₹5,550 Cr issue
+3.92%
Listing gain over issue price
Issue size
₹5,550 Cr
1 lot at cut-off
₹14,841
Lot size
51shares
Open
14 Jun 2021
Close
16 Jun 2021
Allotment
21 Jun 2021
Listing
24 Jun 2021
Listing performance
Issue price
₹291
Listed at
₹302.40
Listing-day close
₹362.85
Latest price
₹752.85
Close on 23 Oct 2026
Listing gain
+3.92%
Return since issue
+158.71%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Jun 2021 – 16 Jun 2021
- Listing date
- 24 Jun 2021
- Face value
- ₹10 per share
- Issue price
- ₹291 per share
- Lot size
- 51 shares
- Total issue size
- ₹5,550 Cr
- Market cap at offer price
- ₹16,974 Cr
- Promoter holding
- 100.00% → 67.30% pre-issue → post-issue
- ISIN
- INE073K01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Credit Suisse Securities (India) Pvt.Ltd.
- Registered office
- Sona Enclave Village, Begumpur Khatola, Sector 35, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 8,58,24,742 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 51 shares per lot, in multiples, at ₹291
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 51 | ₹14,841 |
| Retail (max) | 13 | 663 | ₹1,92,933 |
| S-HNI (min) | 14 | 714 | ₹2,07,774 |
| S-HNI (max) | 67 | 3,417 | ₹9,94,347 |
| B-HNI (min) | 68 | 3,468 | ₹10,09,188 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
8,58,24,742
Anchor portion
₹2,498 Cr
at ₹291 per share
Valuation and performance
Valuation at offer price
₹291 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹16,974 Cr |
About Sona Comstar
Sona BLW Precision Forgings Limited (originally incorporated as 'Sona Okegawa Precision Forgings Limited') is one of India's leading automotive technology companies. The company was incorporated on October 27, 1995 in New Delhi and commenced operations on November 16, 1995. It designs, manufactures and supplies highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. The company has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India. It is a technology and innovation driven company with a strong focus on research and development, developing mechanical and electrical hardware systems, components as well as base and application software solutions to meet the evolving demands of its customers.
Company Analysis
from RHPSona BLW Precision Forgings Limited designs, manufactures and supplies highly engineered, mission critical automotive systems and components such as differential assemblies, starter motors, BSG systems, and EV traction motors for automotive OEMs across electrified and non-electrified powertrain segments.
Sona BLW Precision Forgings Limited (originally incorporated as 'Sona Okegawa Precision Forgings Limited') is one of India's leading automotive technology companies. The company was incorporated on October 27, 1995 in New Delhi and commenced operations on November 16, 1995. It designs, manufactures and supplies highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. The company has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India. It is a technology and innovation driven company with a strong focus on research and development, developing mechanical and electrical hardware systems, components as well as base and application software solutions to meet the evolving demands of its customers.
automotive components manufacturingautomotive technologyprecision forgingselectric vehicle systems
Objects of the Issue
- Repayment and pre-payment of identified borrowings in full availed by our Company ₹2,411.17 million p.22
- General corporate purposes ₹522.02 million p.22
- Funding capex for new manufacturing facility and expansion of existing facilities, including machinery and equipment acquisition ₹1,200 million p.62
- Working capital requirements for operations ₹1,000 million p.62
- General corporate purposes ₹800 million p.62
- Repayment and pre-payment of identified borrowings in full availed by our Company ₹2,411.17 million p.93
- General corporate purposes ₹522.02 million p.95
- The document does not specify the objects of the issue or the specific uses of proceeds from the IPO. p.359
Issue Structure
- Total Issue
- ₹55,500 million (190,721,649 Equity Shares)
- Fresh Issue
- ₹3,000 million (10,309,278 Equity Shares)
- Offer for Sale
- ₹52,500 million (180,412,371 Equity Shares by Singapore VII Topco III Pte. Ltd.)
- Price Band
- ₹285 per Equity Share (Floor Price) to ₹291 per Equity Share (Cap Price)
- Lot Size
- 51 Equity Shares and in multiples of 51 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue by designing, manufacturing and supplying highly engineered automotive systems and components (differential assemblies, differential gears, starter motors, BSG systems, EV traction motors and motor control units) to automotive OEMs. For Fiscal 2021, the company derived 36.1% of income from sale of goods with end-use in North America, 26.5% from Europe, 25.0% from India, and 7.6% from China. The company derives a significant portion of revenue from its top ten customers, which accounted for 79.6% of total income from sale of goods in Fiscal 2021.
Business Segments
Differential assemblies and differential gears for automotive powertrains
Conventional and micro-hybrid starter motors and BSG (belt-driven starter generator) systems
EV traction motors (BLDC and PMSM) and motor control units for electric vehicles
Manufacturing of starter motors for internal combustion engine and electric vehicles
Manufacturing of systems and components for electric vehicles including 48V BSG hybrid motors and related powertrains
Manufacturing of gears and differential assembly systems for automotive applications
Designs, develops and manufactures high torque drive units (i.e., differential assembly with final gear) and different variants of differential assemblies such as final drive assembly, sealed differential, open differential, limited slip differential and forged case differential for passenger vehicles, commercial vehicles, off-highway vehicles and three-wheelers
Designs, develops and manufactures precision forged differential bevel gears using advanced precision forging technology for both electrified and non-electrified powertrains in passenger vehicles, commercial vehicles, off-highway vehicles and three-wheelers
Designs, develops and manufactures various series of four and six poles starter motors based on both field winding and permanent magnet design categories for conventional and micro-hybrid applications in passenger vehicles and light commercial vehicles
Designs, develops and manufactures 48V PMSM motors for hybrid and BEV passenger vehicle applications, 48V, 72V, and 96V BLDC drive motors for electric two-wheelers and three-wheelers, and motor controllers for electric two-wheelers, three-wheelers and passenger vehicle applications
Develops 48V BSG (P0 configuration) as a hybridization solution for hybrid passenger vehicles and light commercial vehicles using claw pole technology to meet global standards
Design, manufacture, assembly, and distribution of precision forged components including bevel gears and differential case assemblies for automotive applications
Manufacture and assembly of starter motors, controllers, alternators and starter kits forming part of automobiles and electric vehicles in domestic and international markets
Design, development, manufacturing, assembly, supply, sale, and trading of motors, controllers and other components for electric vehicles
The Group's operating business is organised and managed according to a single primary reportable business segment namely Automotive Components, manufacturing precision forged parts for the automotive industry.
A mechanism including gears that transmits power to the wheels differently, allowing them to rotate at different speeds as needed when a vehicle turns or travels over uneven portions of the driveway.
Gear arrangement which gives the differential superiority.
Starter motors for micro-hybrid vehicles.
Starter motors for conventional internal combustion engine vehicles.
Synchronous Motors powered by direct current electricity for electric vehicles.
Supplies precision differential assemblies for passenger vehicles, commercial vehicles, off-highway vehicles and three-wheelers for both electrified and non-electrified powertrains
Manufactures precision forged differential bevel gears for various vehicle types and powertrains
Supplies micro-hybrid starter motors for passenger vehicles and light commercial vehicles
Manufactures conventional starter motors for passenger vehicles and light commercial vehicles
Designs and manufactures PMSM and BLDC motors for electric vehicles, hybrid vehicles, and electric two/three-wheelers, along with motor control units
SWOT Analysis
Strengths
- • Leading position in automotive technology with diverse product portfolio(p.22)
- • Strong R&D focus with significant technological investment(p.37)
- • Global manufacturing footprint across key markets(p.22)
- • Strong financial performance relative to peers(p.40)
- • Well-positioned in growing EV market segment(p.40)
- • Significant overseas revenue concentration and manufacturing footprint(p.41)
- • Strong hedging policy for foreign currency exposure management(p.42)
- • Forex gains in FY2021 demonstrating strong currency management(p.42)
- • Leading EV component supplier with established relationships to top global OEMs(p.116)
- • Strong R&D and technological capabilities in hardware and software(p.98)
- • Diversified customer base across multiple geographies and vehicle segments(p.98)
- • Industry-leading financial metrics with consistent performance(p.98)
- • Experienced board and management team(p.98)
- • Leading global tractor component supplier(p.123)
- • Leading global position in differential bevel gears with significant market share across vehicle segments(p.170)
- • Market-leading position in India for differential gears across all vehicle segments(p.175)
- • Strongest EBITDA margins among top 10 Indian auto component manufacturers(p.177)
- • Strong R&D investment and technological capabilities in both mechanical and electrical systems(p.175)
- • Leading supplier of BLDC motors in India for electric two-wheeler and three-wheeler segment(p.174)
- • Significant EV market penetration with 13.8% of revenue from BEV in FY2021(p.173)
- • Diversified geographic presence across North America, Europe, India and China reducing regional dependence(p.175)
- • Strong long-standing customer relationships with 13 of top 20 customers having 15+ year relationships(p.184)
- • Established presence in precision automotive components manufacturing(p.255)
- • Diversified product portfolio across drivetrain and EV segments(p.255)
- • Significant production milestone achieved(p.204)
- • Strategic acquisition adding manufacturing scale and global presence(p.255)
- • Established accounting and financial controls framework under Ind AS(p.263)
- • Diversified global presence with manufacturing and operations across multiple geographies(p.296)
- • Revenue growth trajectory with expanding export operations(p.296)
- • Robust asset base with significant property, plant and equipment(p.271)
- • Significant intangible assets including customer relationships and brand value(p.273)
- • Global top 10 market position in differential bevel gears and starter motors(p.364)
- • Significant market share gains in high-growth EV segment (8.7% for BEV differential assemblies)(p.364)
- • Diversified geographic presence with nine manufacturing facilities across multiple countries(p.364)
- • Strong EBITDA margins and ROE (28.2% and 36.4% respectively in FY2021)(p.365)
- • Rapid EV business growth (243.6% CAGR from FY2019 to FY2021, now 13.8% of sales)(p.365)
- • Strong R&D capability with high power density EV systems and lightweight design capability(p.365)
- • One of India's top two exporters of starter motors(p.365)
- • Leading market position in EV differential assemblies with 8.7% global market share(p.369)
- • Rapid growth in EV sales with 243.6% CAGR from Fiscal 2019 to 2021(p.369)
- • Diversified product portfolio serving both electrified and non-electrified powertrains(p.369)
- • Significant R&D investment and development programs in EV systems(p.369)
- • Strong EBITDA margins among top auto-component manufacturers in India(p.370)
- • Dominant domestic market shares in differential gears and assemblies(p.370)
- • Geographically diversified revenue across North America, Europe, India and China(p.371)
Weaknesses
- • Heavy customer concentration with top 10 customers representing majority of revenue(p.33)
- • Dependence on limited group of customers with potential single-source risk(p.33)
- • High trade receivables relative to revenue(p.39)
- • Reliance on unconfirmed customer orders without firm commitments(p.34)
- • Audit qualification regarding SONA BV subsidiary accounting treatment(p.32)
- • High geographic concentration of manufacturing in India creates operational vulnerability(p.42)
- • Critical single-supplier dependency for key components from China(p.43)
- • Significant indebtedness with debt covenants restricting operations(p.50)
- • Substantial losses from previous overseas acquisitions and insolvency proceedings(p.42)
- • Pending RBI approval for write-off of foreign currency remittance(p.49)
- • Multiple outstanding litigation proceedings including tax disputes(p.49)
- • Prior phishing attack resulting in significant financial loss(p.45)
- • Significant financial indebtedness requiring capital repayment(p.93)
- • Dependence on major customer relationships without diversification assurance(p.116)
- • Funding and deployment of IPO proceeds not independently appraised(p.93)
- • High concentration of revenue from top 10 customers representing 79.6% of sales(p.175)
- • Relatively low capacity utilization at several manufacturing facilities(p.187)
- • Significant off-roll workforce representing 61.7% of total employees(p.193)
- • Dependence on limited suppliers for critical components like magnets(p.187)
- • Significant financial leverage from acquisitions and expansion(p.235)
- • Audit qualification related to discontinued operations accounting(p.244)
- • Working capital requirements increased substantially with growth(p.251)
- • Dependence on acquired entities for revenue growth(p.256)
- • High debt burden with increasing leverage ratios(p.292)
- • Significant dependence on a few key customers(p.296)
- • Complex organizational structure with multiple subsidiaries requiring significant management oversight(p.296)
- • Pending litigation and tax disputes creating contingent liabilities(p.307)
- • Substantial pension and employee benefit obligations(p.303)
- • High financial debt levels with borrowings of ₹4,107.60 million as of March 31, 2021(p.362)
- • Significant exposure to German subsidiaries with ongoing insolvency proceedings affecting operations(p.314)
- • Inability to obtain complete financial statements for disposed subsidiary affecting audit qualification(p.314)
- • Dependency on a limited number of major customers (top ten customers represent significant portion of revenue)(p.364)
- • Dependence on limited suppliers in China for key components(p.370)
- • Concentration risk with top customers representing significant revenue(p.373)
- • Exposure to commodity price volatility in key raw materials(p.370)
- • Vulnerability to supplier disruptions affecting production capacity(p.370)
Opportunities
- • Significant growth potential in global EV market(p.38)
- • Expanding global automotive production expected to recover(p.22)
- • Strategic positioning in new EV development programs(p.38)
- • Growing market share in key BEV segments(p.38)
- • Electrification-driven technology adoption across regions(p.22)
- • Government support for EV charging infrastructure in India(p.41)
- • EV market growth and government incentives for charging infrastructure(p.41)
- • Production Linked Incentive Scheme for automotive industry(p.54)
- • New RODTEP scheme for export products(p.54)
- • Global shift to electric and hybrid vehicles driving demand for EV components(p.119)
- • Government PLI scheme providing incentives for auto component manufacturing(p.114)
- • Expected strong growth in Indian automotive market over next five years(p.129)
- • Rising electrification adoption across Indian two-wheeler, three-wheeler and vehicle segments(p.144)
- • Expansion of global EV market with OEM commitments to electrification(p.116)
- • India's underpenetrated automotive market with huge long-term growth potential(p.128)
- • Expected 36% CAGR growth in global BEV market from 2020-2025 with expanding content per vehicle(p.172)
- • 72-74% CAGR growth in Indian electric two-wheeler segment through FY2026(p.173)
- • Growing market preference for multi-axle and AWD vehicles increasing differential gear content per vehicle(p.179)
- • ₹570 billion PLI scheme for auto sector supporting export-focused manufacturers(p.156)
- • Supply chain diversification away from China creating opportunities for Indian suppliers(p.153)
- • Opportunity to integrate mechanical, electrical and software components into unified e-axle solutions(p.179)
- • Electric vehicle market expansion and new product development(p.204)
- • Strengthening market position through strategic brand acquisition(p.215)
- • Global expansion through established international subsidiary network(p.256)
- • Consolidation of manufacturing operations for efficiency gains(p.213)
- • Expansion of North American operations with growing revenue base(p.296)
- • Growth in European markets with established presence(p.296)
- • Emerging market penetration, particularly in China(p.296)
- • Research and development investments for future product development(p.292)
- • Capital investments in manufacturing infrastructure and capabilities(p.307)
- • Expected rapid EV market growth at 36% CAGR (2020-2025) and BEV production growth from 2.3M to 11.2M units(p.366)
- • Strong domestic automotive market growth projected: PV (12-14% CAGR), CV (9-10% CAGR) and 38% growth in FY2022(p.367)
- • High growth in electric two-wheelers (72-74% CAGR) and electric three-wheelers (46% CAGR)(p.366)
- • Benefit from government incentives including ₹570.42 billion production-linked incentive scheme(p.365)
- • India's 2030 targets indicating 70% of commercial PV, 30% of private PV and 80% of two and three-wheeler sales to be electric(p.366)
- • Growing mix of AWD/4WD vehicles and SUVs driving higher differential gear usage per vehicle(p.367)
- • Awarded 15 development programs from 10 different customers for EV systems with 8 in active production(p.367)
- • Rapidly growing global BEV market with 36% projected CAGR through 2025(p.369)
- • Favorable government policies and consumer shift towards electric vehicles(p.369)
- • Market opportunity from 58 newly awarded development programs across 27 customers(p.369)
- • Supply relationships with major global OEMs providing growth platform(p.370)
- • Strategy to increase market share in growing Indian EV segment(p.369)
Threats
- • Cyclical automotive industry subject to global economic fluctuations(p.31)
- • Significant decline in automotive markets during COVID-19 pandemic(p.30)
- • Risk of further COVID-19 pandemic waves impacting operations(p.35)
- • Intense competition from larger suppliers with greater resources(p.40)
- • Pricing pressure from customers eroding margins(p.39)
- • Customer price reduction pressures in response to volume increases(p.39)
- • Risk of customer insolvency and non-payment(p.39)
- • Dependence on EV infrastructure development for market growth(p.41)
- • Risk of declining EV demand from policy changes(p.38)
- • Decline in Indian automotive market volumes during fiscal 2020(p.30)
- • Risk of declining EV government support affecting demand(p.41)
- • Regulatory and compliance uncertainties in multiple jurisdictions(p.41)
- • Tariff and trade policy volatility impacting profitability(p.41)
- • Foreign currency exchange rate volatility affecting reported revenues(p.42)
- • Supply chain disruptions and transportation risks(p.43)
- • Commodity price volatility and raw material supply risks(p.44)
- • Power and water supply disruptions impacting production costs(p.44)
- • Dependence on customer concentration and risk of customer loss(p.42)
- • Sovereign credit downgrade risk affecting capital market access(p.56)
- • Macroeconomic risks and political instability in India(p.56)
- • Discontinuation of MEIS scheme creating export incentive uncertainty(p.54)
- • Slowdown and volatility in global and Indian automotive production and demand(p.115)
- • Stringent and evolving emission and fuel efficiency regulations across markets(p.117)
- • Exposure to exchange rate and commodity price volatility(p.124)
- • Supply chain disruptions from COVID-19 pandemic impacts(p.125)
- • Competition from new entrants and existing players in EV component market(p.126)
- • Dependency on capital availability and credit conditions for customer purchases(p.126)
- • High dependence on North American market representing 36.1% of FY2021 revenue(p.175)
- • Significant competition from global players with greater financial resources and scale(p.193)
- • Competition from OEM in-house manufacturing and from new technology-focused market entrants(p.193)
- • Exposure to commodity price volatility in steel and copper with time lag pass-through(p.187)
- • Risk of rapid technology obsolescence in EV motors and traction systems(p.176)
- • Dependence on government subsidies (FAME II) for EV affordability and adoption(p.156)
- • Vulnerability to EV industry cyclicality and technology transition risks(p.180)
- • Restrictive regulatory covenants limiting financial flexibility(p.236)
- • Regulatory uncertainty from pending labor law reforms(p.201)
- • Exposure to industrial relations changes and labor law consolidation(p.201)
- • Complex regulatory environment with pending consolidation of social security laws(p.201)
- • Foreign exchange volatility affecting consolidated financial results(p.271)
- • Interest rate risk on variable rate borrowings impacting finance costs(p.294)
- • Regulatory and tax compliance risks across multiple jurisdictions(p.307)
- • Commodity price fluctuations affecting input costs(p.290)
- • Supply chain disruptions and logistics challenges(p.290)
- • Severe COVID-19 pandemic impact: 54.3% drop in Q1 FY21 sales and 18% global vehicle production decline in 2020(p.367)
- • Macroeconomic sensitivity to conditions in key markets (US, Europe, China, India)(p.366)
- • Significant sales concentration in overseas markets (75% in FY2021 with 36.1% North America, 26.5% Europe)(p.365)
- • Indian CV, PV and tractor market experienced 29%, 18% and 10% decline respectively in FY2020(p.367)
- • Regional production declines: North America -20.5%, Europe -22.4%, India -24.3% in 2020(p.367)
- • EV market is new and rapidly evolving with execution risks(p.369)
- • Global slowdown in automotive industry impacting demand(p.390)
- • Foreign currency exchange rate fluctuations affecting reported revenues and income(p.371)
- • Changes in international tariffs and trade agreements impacting exports(p.372)
- • COVID-19 pandemic creating uncertainty in automotive industry demand(p.390)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sunjay Kapur | Promoter | — | — |
| Sona Autocomp Holding Private Limited | Promoter | 33.72% | — |
| Singapore VII Topco III Pte. Ltd. | Promoter | 66.28% | — |
| Sona Autocomp | Promoter Group | — | — |
| Singapore Topco | Promoter | — | 67.30% (to be held after completion of Offer) |
| Sona Autocomp Holding Private Limited | Promoter | 33.72% | 33.12% |
| Singapore VII Topco III Pte. Ltd. | Promoter/Selling Shareholder | 66.28% | 34.18% |
| Sunjay Kapur | Promoter | — | — |
| Singapore VII Topco III Pte. Ltd. (Blackstone affiliate) | Promoter/Shareholder | — | — |
| Sunjay Kapur | Promoter | — | — |
| Sona Autocomp Holding Private Limited | Promoter | 33.7% | — |
| Singapore Topco (Singapore VII Topco III Pte Ltd.) | Promoter | 66.2% | — |
| Singapore VII Topco III Pte. Ltd | Holding Company | 65.85% | 66.28% |
| Sona Autocomp Holding Private Limited | Promoter Group | 34.15% | 33.72% |
| Singapore VII Topco III Pte. Ltd | Promoter | 66.28% | — |
| Sona Autocomp Holding Private Limited | Promoter Group | 33.72% | — |
| Sunjay Kapur | Promoter | — | — |
| Singapore VII Topco III Pte. Ltd. | Selling Shareholder | — | — |
| Singapore VII Topco III Pte. Ltd. | Selling Shareholder | — | — |
Leadership
Sunjay Kapur · Chairman
Vivek Vikram Singh · Managing Director and Group Chief Executive Officer
Rohit Nanda · Group Chief Financial Officer
Ajay Pratap Singh · Vice President (Legal), Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Sona Comstar IPO FAQs
What is the lot size of Sona Comstar IPO?
The minimum lot size of Sona Comstar IPO is 51 shares. One lot costs ₹14,841 at the cut-off price.
When does Sona Comstar IPO open and close?
Sona Comstar IPO opened for subscription on 14 Jun 2021 and closed on 16 Jun 2021.
What is the listing date of Sona Comstar IPO?
Sona Comstar IPO listed on 24 Jun 2021.