Sona BLW Precision shares fall 6% after Blackstone sells stake

Shares of Sona BLW Precision Forgings fell over 6 per cent today after private equity firm Blackstone sold 16 per cent stake in the global automotive technology company. According to reports, Blackstone via its affiliate - Singapore VII Topco III PTE sold a part of its stake in Sona BLW Precision Forgings Ltd via block deal today. Blackstone is estimated to have raised Rs 4,000 crore through the transaction.

Sona BLW Precision Forgings shares opened lower at Rs 524 today.

Stock of Sona BLW Precision Forgings slipped 6.33 per cent to Rs 505 against the previous close of Rs 539.10 on BSE.

However, the shares have gained 10.36 per cent in a year but lost 29.62 per cent this year.

Share Market Live: Sensex falls 275 pts, Nifty below 17,900; Dr Reddy's, Wipro top losers

The stock hit a 52-week high of Rs 839.15 on December 14, 2021 and a 52-week low of Rs 437.70 on August 23, 2021.

Total 965.36 lakh shares of Sona BLW Precision Forgings changed hands amounting to a turnover of Rs 4,922.73 crore on BSE. The market cap of the firm fell to Rs 30,552 crore on BSE.

At 12:50 pm, Sona BLW Precision Forgings share price traded 3 per cent lower at Rs 522.85.

As per shareholding data, Singapore VII Topco III PTE owned 34.12 per cent or 19.93 crore shares in the firm at the end of June 2022 quarter.

Nomura is the sole broker to the deal.

Sona BLW made its market debut in June 2021. During the IPO, Singapore VII Topco III offloaded around half of its stake worth Rs 5,250 crore. Post the offer for sale (OFS), the stake of the Blackstone-backed firm fell to 34.18 per cent from 66.28 per cent pre-IPO.

Shares of Sona BLW closed at Rs 539.10 on BSE on August 17, falling 5.5 percent against the previous close on BSE. Net profit of Sona BLW Precision Forgings fell 7.77 per cent to Rs 75.84 crore in the June quarter against Rs 82.23 crore profit in the corresponding quarter of previous fiscal.

ALSO READ: Zomato shares rise 6% amid volatile market, here's why

However, sales grew 17.67 per cent to Rs 589.22 crore in Q1 against Rs 500.75 crore in the June quarter of last fiscal. Operating profit grew 2.71 per cent to Rs 142.51 crore in the June quarter against Rs 138.75 crore profit in the corresponding period of the previous fiscal.

Sona BLW Precision Forgings is engaged in the production of differential assemblies, differential gears, conventional and micro-hybrid starter motors, belt starter generator (BSG) systems, electric vehicle (EV) traction motors, such as brushless direct current (BLDC) and permanent magnet synchronous motors (PMSM) and motor control units. Its driveline technology products include precision forged gears, forged couplings and e-drive, among others.