Sona BLW Forgings Ltd. (Sona Comstar) made its stock market debut at a premium to its issue price.
The auto-parts maker listed at Rs 302.40 apiece—3.3% higher than its issue price of Rs 291—on June 24, according to exchange data. The stock rose as much as 24.7% thereafter.
Sona Comstar's Rs 5,550-crore initial public offering was subscribed 2.3 times after a three-day share sale.
The portion meant for qualified institutional buyers was subscribed 3.5 times, retail individual investors 1.61 times and non-institutional investors 40%.
The IPO comprised fresh issue of shares amounting to Rs 300 crore and an offer for sale aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.
The company plans to use Rs 241 crore from the fresh issue's proceeds to pare debt.
Sona Comstar designs, manufactures, and supplies automotive systems such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units to automotive original equipment makers across U.S., Europe, India and China.
The stock ended the day 24.7% higher at Rs 362.85. That compares with the 0.6% gain on the Nifty 50 index and Sensex's 0.7% rise.
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