Sona-BLW-Precision-Forgings-Ltd.-Feature-Image
IPO-Note SONA BLW PRECISION FORGINGS LTD.
Rs-285-Rs291 per Equity share Recommendation: Subscribe

Company Profile: –

Company is one of India’s leading Automotive technology company that design, manufacture and supply Automotive systems and components. It Offerings include BSG Systems, Conventional and micro hybrid starter motors, EV traction motors,Differential gears and Differential assemblies. Company supplies to various OEM in India and in different countries like Europe, US, India and China for Electric powertrain and Non- Electric power train segments. Company is among the top 10 players globally in the differential bevel gears market and generate approximately 75% of it’s Income from the overseas market from the sale of goods for 9MFY21 and one of the largest exporters  of Starter motors as per the Ricardo Report. It has nine manufacturing Facilities and assembly line out of which six located in India and others  in  Mexico, China and USA  from where they supply their products to the top global  OEMs.

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SONA BLW PRECISION FORGINGS LTD. IPO

Wants To Apply Online

 

Issue Details
Objects of the issue ·          To Repayment or pre-payment of company’s Debt.

·          To meet general corporate purpose.

Issue Size Issue Size – Rs.5550 Crore

Fresh Issue- Rs.300 Crore

Offer for Sale-Rs.5250 Crore

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 285 – Rs. 291
Bid Lot 51 shares
Listing at  

BSE, NSE

Issue Opens: 14thJune2021 – 16th June2021
QIB 75% of Net Issue Offer
Retail 10% of Net Issue Offer
NIB 15% of Net Issue Offer

 

Check SONA BLW PRECISION FORGINGS LTD. IPO Allotment Status

SONA BLW PRECISION FORGINGS LTD. IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To  SONA BLW PRECISION FORGINGS LTD. IPO IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as SONA BLW PRECISION FORGINGS LTD.
  4. Enter your PAN Number or Application Id or DP Client Id.

 

SONA BLW PRECISION FORGINGS LTD. IPO

Application Form

 

Financial Performance:

Financial -Performance-Slw

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 100% 67.3%
Public 32.7%

Source: RHP, EWL Research,

Strengths:

  • Diversified and Futuristic products.
  • Strong Client Base.
  • Strong R&D in Technological era.
  • Consistent and strong financials.

 Key Highlights:

  • Revenue of the company stood at Rs.1566.3 Cr. witnessed growth at a CAGR of 31% from FY19-FY21.Significant revenue of the company comes from North America (36.1%) followed by Europe (26.5%), India (25%), China (7.6%) and others (4.8%)
  • Net profit stood at Rs.215 Cr. as on FY21 witnessed a 40% decline YoY due to increase in Indirect cost and tax expense as a result Net profit margin Decline to 13.73% in FY21 from 34.71% in FY20
  • Current ratio stood at 1.73 times in FY21 slightly reduced from 1.92 in FY20.
  • In FY21, Debt/Equity ratio is 0.20 Times decline by 0.03 times because of bonus issue in FY21 but Debt has increased by 16.74% in FY21.
  • Company has increased its share of sale to China to 7.6% in FY21 from 1.9%. in FY19.
  • CFO/PAT stood at 0.66 Times in FY21.

Risk Factors:

  • Pricing pressures from customers could affect Profitability and Margins.
  • Supply chain disruptions and shortage of Raw material could impact the production and increase the cost.

Outlook:

Sona BLW precision Ltd is an auto ancillary company that manufacture and supplies critical automotive systems and components Like Assemblies, EV Traction motor, BSG systems for both electrified and non-electrified powertrain segments. BEVs are expected to grow at a CAGR of approximately 36% between calendar years 2020 to 2025 with increased market penetration, according to the Ricardo Report, which will be positive for company as it supplies EV differential assemblies, differential gears, BSG systems and EV traction motors into this market. As per the experts the demand for two wheeler electric in India expected to grow at a CAGR of 72% to 74% from FY21 to FY26 and company supply e-axles, BLDC motors and motor control units for use in the electric two-wheeler and three-wheeler segments. Company has a futuristic product portfolio as 13.8% of company’s sales accounts for BEV (Battery Electric Vehicle) and vehicle segments, PVs, CVs and OHVs contributed 68.4%, 14.4% and 17.1% of income from sale of goods and it’s a Global Tier 1 supplier of PVs, CVs, OHVs and EVs for Fiscal Year 2021. On the other hand PMP (Phase Manufacturing Programme) norms increases import duty on EV auto component to 15% from 10% also FAME 2 will be an additional advantage to the company to comply with ‘MAKE IN INDIA’ initiative. Thus, we advise to subscribe the IPO.

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