Sona Blw Share Price: Blackstone sells entire stake in Sona BLW Precision for Rs 4,916 cr via block deal


Blackstone has sold its entire 20.5% stake in Sona BLW Precision Forgings for about Rs 4,916 crore via a block deal on Monday. Blackstone, through its subsidiary, Singapore VII Topco III Pte Ltd, offloaded about 11,99,25,641 shares at a price of Rs 410 per unit, according to the data available with the exchanges.

The sale happened at a discount of 6% over the previous day’s closing price. On Monday, the company’s stock closed 6.06% lower at Rs 409.85 on the NSE.

Shares of Sona BLW were under pressure for the past few days, reacting to reports of a block deal. In the last five days, the stock has lost about 10.66%.

Under the block deal, the Monetary Authority of Singapore has bought 0.98% stake in the company, while the Govt of Singapore bought 4.14%. Top fund houses BNP Paribas, ICICI Prudential and HDFC Mutual Fund have bought 1.24%, 0.68% and 0.62% respectively. Other buyers include Fidelity (1.94% stake) and Societe Generale (1.54% stake).

Blackstone has held about 34% stake in Sona BLW post the IPO, but it has pared the stake in multiple tranches, bringing down the stake to 20.5%

Promoters and promoter groups hold 53.53% stake in the company, while 46.47% rests with the public. Among the public shareholders, mutual funds own about 21.78% and foreign investors have a stake of 11.06%. Both promoters and FIIs have reduced their shareholding marginally in the December quarter.

Sona BLW Precision Forgings is an automotive systems and components manufacturer, offering differential assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units.According to the Trendlyne data, the company has an average target price of Rs 572, showing an upside of 41% from the current levels.

The company has reported its highest quarterly revenue, EBITDA and net profit in the third quarter. Its revenue grew 39% year-on-year in the said quarter, driven by the scale-up of revenue from new programs. The company’s profit rose 45% year-on-year to Rs 107 crore in the same period.

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