Blackstone-backed auto ingredients firm Sona Comstar targets Rs 4,000-crore IPO

Blackstone (Image: Reuters)

Blackstone (Image: Reuters)

American non-public fairness wide Blackstone is making ready to delivery an preliminary public providing (IPO) for an auto ingredients firm it controls, the 2d skill substantial-mark checklist of an mission from its India portfolio in 2021.

Gurugram-essentially based fully world auto component maker Sona Comstar, which is backed by Blackstone and Sunjay Kapur-led Sona Neighborhood, has launched preliminary talks with bankers and is taking a effect to amass Rs 3,500 crore to Rs 4,000 crore by checklist on the exchanges, of us accustomed to the matter told Moneycontrol.

The size of the allege has no longer been finalised but and might perchance possibly swap at a later stage, they acknowledged.

“Sona Comstar has shortlisted investment banks Kotak Mahindra Capital, JM Financial , Credit Suisse, Nomura and JP Morgan as advisors and might perchance possibly file the DRHP ( draft red herring prospectus) with SEBI by February,” acknowledged among the persons cited above.

Nomura is furthermore half of Blackstone’s advisors for the Aadhar Housing Finance IPO, which became once first reported by Moneycontrol on November 3, 2020.

“Blackstone will plot a partial exit by task of the IPO. The checklist is geared in direction of scaling up Sona Comstar, bringing in extra stakeholders and making it an even bigger, stronger platform,” added a 2d particular person.

The firm goals to became among the high four Indian auto component companies by FY24, in step with its web procedure.

Blackstone is the sector’s ideal replacement asset manager and the ideal owner of commercial proper estate in India. It has furthermore kickstarted preliminary discussions for an IPO by its housing finance portfolio firm Aadhar Housing Finance. Moneycontrol became once the first to document the story on November 3, 2020. 

In August 2019, Blackstone presented the merger of Chennai-essentially based fully auto component firm Comstar, which it controlled, with Sona BLW to produce Sona Comstar. Blackstone would withhold a 65 percent stake in the firm and Sanjay Kapur would withhold 35 percent, in step with the announcement.

“The auto market is at the backside of the cycle. Investors are largely underweight and might perchance possibly manufacture positions in new issuances,” acknowledged a Third particular person accustomed to Sona Comstar’s IPO plans. A fourth particular person furthermore confirmed the IPO roadmap of the firm.

The full four people spoke to Moneycontrol on the placement of anonymity. Per an email request, Blackstone and Credit Suisse declined to insist. Moneycontrol is staring at for an email response from Sona Comstar, Kotak Mahindra Capital, and JM Financial, and the story will be up-to-the-minute will their responses.

On December 10, 2020, Coimbatore-headquartered auto component maker Craftsman Automation filed its DRHP with SEBI to delivery a Rs 750-crore IPO.

The Sona Comstar footprint

Sunjay Kapur is the Chairman of Sona Comstar, which has 9 vegetation spread across India, China, Mexico, and the US. The export-pushed firm had revenues of Rs 1,600 crore in FY19 and has procedure a income aim of $1 billion by 2024. Per stories, it presents to auto majors equivalent to Ford Motors, Daimler, Tata Motors, and Ashok Leyland.

Per its web procedure, it’s among the sector’s ideal producers of precision solid gears for differentials with a world market half of 6 percent to boot to the producer of the sector’s lightest starter motor. Within the home market, the firm is a number one participant in the industrial automobile negate for bevel equipment presents.

Along with differential gears, the firm produces BSG ( Belt Driven Starter Generator) alternate options for hybrid autos, traction motors for EV applications, starter motors, alternators, transmission gears, axle stubs and differential assemblies for electric and combustion engine autos.

Per Automobile Part Producers Affiliation, auto component exports from India are expected to achieve $80 billion by 2026.

Blackstone's IPO document card

The final home IPO from the Blackstone portfolio through the mature route took place bigger than 5 years support when scent maker SH Kelkar launched a Rs 500-crore provide in October 2015.

In the case of REIT ( proper estate investment have faith ) listings, in April, 2019, India noticed its first REIT IPO  when Embassy Site of commercial Parks , backed by Blackstone and Embassy Neighborhood hit the home bourses.  Later, in August 2020 ,  the 2d REIT IPO, namely Mindspace Industrial Parks , backed by Blackstone and Good sufficient Raheja Corp, made its market debut.

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