Promoter Aureus Investment Pvt Ltd plans to sell 3.25% stake in Sona BLW Precision Forgings through a block deal on Wednesday, according to reports. Aureus Investment is offering up to 19 million shares, with the base size being 12 million shares. The floor price for the sale is INR 500 a share, a discount of 7% to Tuesday’s closing price of INR 535.50.
Aureus Investment aims to raise INR 950 crore (USD 115 million) from the sale of stake. As of March end, Aureus Investment held a 33% stake in the automotive component maker.
JM Financial is the sole broker for the block deal. In March, private equity major Blackstone sold the balance 20.5% stake in Sona BLW. Before the sale, Aureus Investment and Blackstone held 33.0% and 20.5% stake, respectively, in Sona Comstar as the auto technology company‘s co-promoters.
The sale by Blackstone saw strong demand from foreign institutional investors, sovereign wealth funds, domestic mutual funds and insurance companies. Marquee investors like the Government of Singapore, Fidelity, FMR, ICICI Prudential Life Insurance and HDFC MF bought shares from Blackstone in the block deal.
In 1 month, shares of Sona BLW have given over 11% returns, and 19% returns in a quarter. For FY23, the company reported 26% growth in revenue to INR 2,676 crore. Net profit rose 28% to INR 395 crore. Sona BLW stock has an average target of INR 574.33, which represents an upside potential of nearly 8% from the current levels.
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