Sona BLW raises ₹2,400 Crore via QIP

10 Sep 2024 , 01:36 PM

Sona BLW Precision Forgings Ltd., a maker of automobile components, finished its institutional share offering (QIP) on Monday, raising ₹2,400 Crore.

According to the company’s market filing, the issuance drew substantial investor interest, with subscriptions totalling 5.5 times the number of shares on offer.

Sona BLW has approved the issue of 3.47 Crore equity shares to eligible institutional buyers at a price of ₹690 per share. This is roughly equal to the stock’s closing price on Monday, which was ₹697.05.

Only two institutions received more than 5% of the total number of shares available. SBI Mutual Fund has been issued 25%, of the shares available in the QIP, while ICICI Prudential Flexicap Fund has received 8.33% of the total shares.

According to Sona BLW’s exchange filing, additional participants in the QIP included White Oak, Goldman Sachs Asset Management, Axis Mutual Fud, Aditya Birla Sun Life Mutual Fund, Norges, BNP Paribas, Fidelity International, and Franklin Templeton.

The QIP proceeds will strengthen the company’s capital structure to support its organic and inorganic growth goals.

Jefferies India Private Limited and JM Financial Limited served as Book Running Lead Managers (BRLMs) for the QIP offering. Sona BLW’s legal counsel was Shardul Amarchand Mangaldas & Co., while the BRLMs were represented by AZB & Partners and Linklaters Singapore Pte Ltd.

At around 11.09 AM, Sona BLW was trading 2.16% higher at ₹715.25, against the previous close of ₹700.15 on NSE. The counter touched an intraday high and low of ₹718.90, and ₹703.90, respectively.

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