The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Sona BLW Precision forgings IPO– one of leading automotive technology companies in India and among top 10 globally for differential level gear segment.
Business — Designing, manufacturing and supplying differential assembly, gears, conventional and micro hybrid starter motors
~75% business comes from exporting
Offer purpose — Offer of 5550 cr for debt prepayment and exit of one of PE investors
Most of EV related business form one customer and client concentration risk for ~60% revenue from top 5 customers
Company has diversified business revenue mix in terms of geography, vehicle segment, powertrain and products
With about 40 per cent of its revenues from hybrids (mostly micro hybrids) and EVs, the company is a play on the growing market for cleaner vehicles across the globe
Electric drive motors and inverters to Sona BLW’s existing product line of differential gears and assemblies for electric vehicles (EVs) has been added after the acquisition of comstar few years back
The expected change in product mix is value adding for the company as revenue realisations (and hence, proﬁtability) for diﬀerential assemblies generally move up as the powertrain shifts from combustion to full hybrids and EVs.
Very expensive looking at last results
As consolidation and revenue mix changes, may become available at decent valuations
Should we apply?
People can ideally avoid and if one subscribe, then do for possible listing gains only. If no listing gains then may need to hold longer
Recommended to sell if getting 10-20% gains on listing day
One can wait to enter at low prices for investment purposes after listing
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.