Sona BLW Shares Climb on QIP Plans

5 Sep 2024 , 01:11 PM

Shares of Sona BLW Precision Forgings (Sona Comstar) rose 4% to an intraday high of Rs 751 after the company’s fundraising committee (FRC) declared the floor price for its qualified institutional placement (QIP) on Wednesday at Rs 699.01 per share.

The company’s floor price represents a 3% discount over Wednesday’s closing price of Rs 721.50.

“The business may, at its discretion, grant a discount of no more than 5% off the floor price determined for the Issue. The issue price will be established by the firm in collaboration with the book running lead managers selected in regard to the issue,” the company stated in a filing with the exchanges.

The company’s board of directors authorised the QIP during its July 24, 2024 meeting.

Sona Comstar is an Indian-based worldwide automotive systems and components manufacturer with ten sites in India, China, Mexico, and the United States. The company is an automotive technology company that develops, manufactures, and distributes highly designed, mission-critical automotive systems and components.

Sona Comstar’s shares have risen 26% over the last year, underperforming the benchmark Nifty, which has returned over 29% in the same period. The company’s year-to-date returns total 13%.

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