Sona BLW plunges 6% as 16% equity changes hands

NEW DELHI: Shares of Sona BLW Precision Forgings fell over 6 per cent in Thursday's trade after 16 per cent equity changed hands in 22 bunches, ET NOW reported.

The scrip plunged 6.32 per cent to hit a low of Rs 505. Blackstone was seeking to raise as much as Rs 3,180 crore through the sale of shares in the automotive component maker, according to terms of the deal seen by Bloomberg News.


An affiliate of the US firm was offering the shares at Rs 500 each, the terms show. That was a 7.2 per cent discount to Wednesday’s closing price.

As per terms, Blackstone was looking to increase the deal size to Rs 3,970 crore, if there was enough investor demand.

Sona’s initial public offering in June last year raised about $776 million for the company and its shareholders, in a deal that saw more than twice as many subscriptions as there were available shares. The IPO included a sale of new shares worth 3 billion rupees, while Blackstone divested a portion of its stake. The company’s shares have rallied about 85% since their debut.

The Blackstone-controlled entity held a 34.1 per cent stake in Sona as of June, according to data compiled by Bloomberg. The Indian unit of Nomura Holdings Inc. was the sole placement agent of the deal. Books were set to close on Thursday.