EV Stock, which designs, manufactures, develops, and supplies engineered automotive systems and components, jumped 4 percent in the day’s trade upon receiving PLI certification and launched QIP of Rs. 2,400 Crores.
Price Action
With a market capitalization of Rs. 42,431 Crores, the shares of Sona Blw Precision Forgings Limited were trading at Rs. 725.15 per equity share, up 0.39 percent from its previous day’s close price of Rs. 722.30.
PLI Certification
Sona Blw Precision Forgings Limited under the Production-Linked Incentive (PLI) for the Automobile and Auto Component Industry in India (“PLI-Auto”) has received certification for its Product “Hub Wheel Motor for electric two-wheelers” from the Ministry of Heavy Industries, for availing the benefits/incentive under PLI Scheme.
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Fund Raising
The board of directors of Sona Blw Precision Forgings Limited has approved and launched the Qualified Institutional Placement for raising funds of upto Rs. 2,400 Crores and it has set an issue price of Rs. 699.01 per share for the QIP which is at a discount of 4 percent from its current market price, with equity dilution expected to be 6.06 percent.
About the Company
Sona Blw Precision Forgings Limited is engaged in the business of designing, manufacturing, developing, and supplying engineered automotive systems and components such as differential assemblies, gears, conventional and micro-hybrid motors, EV Traction motors, and many more. It has a strong order book of Rs. 23,300 Crores.
Financials & Ratios
Its Revenue from operations grew by 23.19 percent YoY from Rs. 674 Crores in Q1FY24 to Rs. 830 Crores in Q1FY25, accompanied by profits of Rs. 102 Crores to Rs. 155 Crores.
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In terms of Return ratios, it has reported a return on equity (ROE) of 20.1 percent and a return on capital employed (ROCE) of 23.8 percent. It has reported a high debt-to-equity ratio of 0.15.
Written by: Bharath K.S
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