Sona BLW Precision bullion up more than 6% in one day after block deal; Find out why

Shares of Sona BLW Precision Forgings (Sona Comstar) rose over 6 percent to Rs 432.60 in mid-day trade on BSE on Tuesday, a day after US-based private equity firm Blackstone sold its entire 20.5 percent stake for around Rs 4,916 crore. block transaction.

Private equity firm Blackstone, which owns Sona BLW through an entity called Singapore VII Topco III PTE Ltd, sold about 12 million shares of the company for 4,917 million rupees at an average price of 410.04 rupees in the open market on Monday.

The scrip rose in mid-day trading on Tuesday after foreign investors, mutual funds, sovereign wealth funds and insurance companies bought a 20.5 percent stake in Blackstone.

Some of the marquee buyers in this deal were the Government of Singapore, Societe Generale, Fidelity Asian Values ​​Plc, BNP Paribas Arbitrage and the Monetary Authority of Singapore. HDFC Mutual Fund and ICICI Prudential were among the mutual funds that bought the stake.

Prior to this transaction, Aureus Investment and Blackstone owned 33 and 20.5 percent of Sona Comstar, respectively.

Promoters and promoter groups own 53.53 percent shares in the company, while 46.47 percent are held by the public. Among public shareholders, equity funds hold approximately 21.78%, and foreign investors hold 11.06%. In the December quarter, both promoters and FIIs reduced their shareholding quite a bit.

Sona Comstar Company Sona BLW Precision Forgings Ltd. and Comstar Automotive Technologies Pvt. was created as a result of the merger. Ltd. In 2019. Sona Comstar is a traction motor and motor controller supplier for electric two-wheelers.

Sona Comstar Company Sona BLW Precision Forgings Ltd. and Comstar Automotive Technologies Pvt. was created as a result of the merger. Ltd. In 2019. Sona Comstar is a traction motor and motor controller supplier for electric two-wheelers.

Brokerage firm CLSA maintained its buy rating on the stock but cut its price target to Rs 529 from Rs 566 earlier. The firm said that Sona BLW has a very strong order book and their EBITDA margin is likely to increase depending on the PLI scheme and product mix. The note further added that Blackstone’s departure does not change its thesis about the company.

Sona BLW reported highest ever quarterly revenue and net profit in December.

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