Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Sona Blw Precision Forgings Lt / Equity Capital Markets

Sona Comstar (Sona) aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. It registered a strong bounce bank in FY21 with 28.4% revenue growth but PAT was flat.While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.We have covered the deal background in our earlier note, <a href="https://www.smartkarma.com/insights/sona-comstar-pre-ipo-inconsistent-growth-patchy-disclosures" target="_blank" rel="noopener">Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures. </a>In this note, we will talk about the recent updates and run the deal through our ECM framework.

Sona Comstar (Sona) aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. It registered a strong bounce bank in FY21 with 28.4% revenue growth but PAT was flat.While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.We have covered the deal background in our earlier note, Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures. In this note, we will talk about the recent updates and run the deal through our ECM framework.

Sona Comstar - Has Its Positives, but We Remain Unconvinced

Sona Comstar (Sona) aims to raise around US$800m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. In addition, its 9M21 performance was propped by a single EV customer. While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.

Sona Comstar (Sona) aims to raise around US$800m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. In addition, its 9M21 performance was propped by a single EV customer. While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.

Sona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/sona-blw-precision-forgings" target="_blank" data-smartkarma-citation="entities:32993:1" rel="noopener">Sona BLW Precision Forgings (SPF IN)</a>/Sona Comstar is one of India’s leading auto technology companies that designs, manufactures, and supplies highly engineered, mission-critical systems and components. Sona Comstar is looking to raise Rs60 billion ($820 million) through an IPO in India as soon as April, according to press reports. The offer comprises a primary raise of Rs3 billion ($41 million) and a secondary raise of Rs57 billion ($777 million). The selling shareholder is <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a>.  <div class="content-highlight">Sona Comstar’s broad product portfolio which spans both conventional and electrified powertrains position it to gain from high growth auto industry trends (rising penetration of mild hybrids/full hybrids and battery electric vehicles) as well as various Government of India initiatives to spur the growth of the auto industry (such as recently announced Rs570 billion production-linked incentive scheme). Overall, we think that Sona Comstar is an attractive and alternative play on the electric vehicle market.</div>

Sona BLW Precision Forgings (SPF IN)/Sona Comstar is one of India’s leading auto technology companies that designs, manufactures, and supplies highly engineered, mission-critical systems and components. Sona Comstar is looking to raise Rs60 billion ($820 million) through an IPO in India as soon as April, according to press reports. The offer comprises a primary raise of Rs3 billion ($41 million) and a secondary raise of Rs57 billion ($777 million). The selling shareholder is Blackstone Group LP (BX US).  Sona Comstar’s broad product portfolio which spans both conventional and electrified powertrains position it to gain from high growth auto industry trends (rising penetration of mild hybrids/full hybrids and battery electric vehicles) as well as various Government of India initiatives to spur the growth of the auto industry (such as recently announced Rs570 billion production-linked incentive scheme). Overall, we think that Sona Comstar is an attractive and alternative play on the electric vehicle market.

Sona Comstar IPO Initiation: Shifting Gears

India

SONA BLW Precision Forgings Limited operates as an automotive systems and components manufacturer. The Company offers differential assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units. SONA BLW Precision Forgings serves automotive sector worldwide.

Sona Blw Precision Forgings Lt (SONACOMS IN)

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Sona Blw Precision Forgings Lt (SONACOMS IN)

Sona Comstar - Has Its Positives, but We Remain Unconvinced

Sona Comstar aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.

Sumeet Singh

Sona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures

Sona Comstar (Sona) aims to raise around US$800m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.

Sumeet Singh

Sona Comstar IPO Initiation: Shifting Gears

Sona Comstar is looking to raise Rs60 bn ($820 m) through an IPO in India. Overall, we think that Sona Comstar is an attractive and alternative...

Arun George

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