Sona Comstar Shares Rise 8% as Institutional Investors Buy 20.5% Stake in Blackstone

Long-term investor bulk buys Blackstone's 20.5% stake in Sona Comstar.

Shares of Sona BLW Precision Forgings (Sona Comstar) rose 8% to Rs 436.25 in intraday trade on Tuesday after long-term investors bought Blackstone’s 20.5% stake in the company through a block deal on the open market on Monday.

The stock fell 7% on Monday after Blackstone sold its remaining 20.5% stake in Sona Comstar at Rs 410 per share in a block deal. The total deal size for the stake sale is approximately Rs 4,920 crore.

As co-sponsors of the automotive technology company, Aureus Investment Private Limited and Blackstone held 33% and 20.5% of Sona Comstar before yesterday’s deal, respectively.

Sona Comstar said the stake sale was met with strong demand from foreign institutional investors, sovereign wealth funds, domestic mutual funds and insurance companies. Large investors, including the Singapore government, Fidelity, FMR, ICICI Prudential Life Insurance and HDFC MF, bought Blackstone shares in block trades.

Sona Comstar is a leading global supplier of driveline solutions for electric vehicles (BEV), passenger cars, commercial vehicles and off-highway vehicles. Sona Comstar is India’s leading supplier of Traction Motors and Motor Controllers for Electric Two Wheelers (e2Ws).

Management said that with the twin megatrends of electrification and automation in the auto industry, the company is well-positioned to capture growth opportunities by continuing to focus on its core values.

Meanwhile, on February 28, 2023, rating agency India Ratings & Research (Ind-Ra) revised Sona Comstar’s outlook from ‘stable’ to ‘positive’ and affirmed the company’s long-term issuer rating at ‘IND AA’.

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