Blackstone sold its entire 20.5% stake in Sona BLW Precision Forgings for about Rs 4,916 crore via a block deal on Monday through a block deal. As per an ET report, Blackstone offloaded about 11,99,25,641 shares at a price of Rs 410 per unit through its subsidiary Singapore VII Topco III Pte Ltd.
After the block deal took place, some foreign investors, mutual funds, sovereign wealth funds and insurance companies bought the offloaded 20.5 percent stake in the company.
The company’s stock started its trading session at Rs 415 and is currently trading at Rs 434. As compared to the previous closing price of Rs 406, the current levels show an upside of around 6.8 percent. Having a purview of 6 months, the stock has underperformed and showed a downfall of around 18 percent from Rs 529 to the current levels. Going forward with a horizon of 1 year, the stock has shed around 29 percent from Rs 613 to current levels.
Sona BLW Precision Forgings is an India-based automotive technology company. The company is engaged in designing, manufacturing and supply of engineered automotive systems and components such as differential assemblies, gears, conventional and micro-hybrid motors, BSG systems and EV Traction motors across all vehicle categories.
It develops mechanical and electrical hardware systems, components as well as base and application software solutions. The product line of the company can be classified under two segments namely the Driveline parts and the Motors segment.
Sona BLW is among the Top 10 Global Differential Bevel Gear Suppliers and the Largest manufacturer of differential gears for PVs, CVs & Tractors in India.
Having a quick glance at the financials of the company, it can be observed that the revenues and net profit figures have shown a rise on a QoQ basis. Revenues shifted from Rs 652.9 crores in Q2 v/s Rs 675.2 crores in Q3. Net profits, on a same note, moved from Rs 92.5 crores in Q2 v/s Rs 107 crores in Q3.
Another parameter being the profitability ratios, the returns to the equity stakeholders have increased from 16.88 percent in FY20-21 to 21.50 percent in FY 21-22. Moreover, the returns on the capital employed has also increased from 20.6 percent in FY20-21 to 23.6 percent in FY 21-22. The debt to equity ratio of the company has witnessed a downfall from 0.27 in FY20-21 and reducing it down to 0.04 in FY 21-22.
As per the latest quarter, the promoters have marginally reduced their stakeholders from 53.59 percent Q2 and currently holds 53.53 percent holdings in the company. FII’s too have reduced their stakes from 11.56 percent in Q2 and currently hold 1.27 percent holdings.
Written by Amit Madnani
