Blackstone backed Sona BLW Precision, also known as Sona Comstar, got listed at Rs 302.40 on BSE, a 3.92 per cent premium over its issue price of Rs 291. On the NSE, the scrip got listed at Rs 301, up 3.44 per cent.
Analysts mostly had ‘subscribe with long term gains’ rating on the issue, despite the pricey valuations. They are still bullish on the counter post listing, in the longer run, suggesting investors to hold it.
Astha Jain of Hem Securities, who had ‘subscribe’ rating on the issue. She said, “We had recommended the issue for a longer run and the company has given modest gains on the listing day despite low levels of subscription.”
She reiterated the counter as longer term play. “Investors who had put their money only for listing gains, can book half of the profits,” she added.
Sona Comstar, which was sold from June 14 to June 16, was subscribed 2.33 times, with the portion meant for qualified institutional buyers (QIBs) getting subscribed 3.54 times and that of retail individual investors (RIIs) by 1.61 times. The non-institutional investor quota remained undersubscribed at 40 per cent.
Echoing the similar views, Vinit Bolinjkar, Head of Research, Securities said that investors should stay invested in the counter as it is a bluechip of the auto ancillary sector.
“The company is an intrinsic play for the high growth EV theme. Considering the strong clientele and robust exports, companies of this pedigree are not found more often. We expect the company to continue to do well in the coming years.”
The auto ancillary company is engaged in designing, manufacturing, and supplying highly engineered critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units.
Milan Desai, Lead Equity Analyst, Angel Broking said that the growth prospects of Sona Comstar are bright owing to switchover to EVs, the enhanced capabilities and Blackstone’s backing.
“Considering the strong growth outlook for the BEV/Hybrids that the company caters to as well as rich multiples that it is currently trading at, it would be wise to book partial profits while being invested for the long run with the balance shares,” he added
