Sona Comstar IPO: Grey market premium, other details in 10 points

Sona Comstar IPO is trading at a premium of ₹50 in grey market

Sona Comstar IPO (Initial Public Offer) has opened for subscription today and the public issue will remain open for bidding till 16th June 2021. The auto company has fixed Sona Comstar IPO (which is also called Sona BLW IPO) price band at ₹285 to ₹291 and lot size of the public issue 51. According to stock market experts, Sona Comstar IPO is trading at a premium of ₹50 in grey market.

Here are the 10 points that one should know while subscribing for the Sona Comstar IPO:

1] Sona Comstar IPO GMP: Speaking on Sona Comstar IPO grey market premium Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Sona Comstar IPO grey market premium today is ₹50 that means the market is expecting it to open at ₹335 to ₹341.”

2] Sona Comstar IPO rating: Experts have given ‘buy’ tag to the Sona Comstar IPO as the company’s fundamentals are looking strong. Suggesting IPO investors to subscribe the research team of ICICI direct said, “Sona BLW Precision Forgings (SBLW) is a diversified manufacturer of highly engineered automotive components and systems with capabilities across drive-train parts and motor electronics. The company has six manufacturing locations in India along with three plants abroad, serving automotive OEMs in the domestic as well as international markets.”

Saurabh Joshi Research Analyst at Marwadi Shares and Finance Ltd said, “Considering the FY-21 adjusted EPS of 3.69 on a post-issue basis, the company is going to list at PE of 78.9X with a market cap of Rs. 1,69,737 million while its listed peers namely Motherson Sumi and Minda Industries are trading at a PE of 73.7X and 196.0X. We recommend to “Subscribe” this IPO as the company is a global player in critical auto components with a thrust on the EV segment and has a strong financial track record of growth and profitability.”

On what to do after the IPO listing Avinash Gorakshkar of Profitmart securities said, “The IPO is expected to give 15 to 20 per cent listing gains as Sona Comstar IPO grey market price will keep on changing till the issue is listed. So, I would advise to book profit on the listing date as the IPO is slightly over-priced.”

3] Sona Comstar IPO price: Price band of Sona Comstar IPO is fixed at ₹285 to ₹291.

4] Sona Comstar IPO lot size: Lot size of Sona Comstar IPO has been fixed at 51 company shares. So, one bidder will have to apply for 51 company shares as one bidder is allowed to apply for minimum one lot while one bidder can apply for maximum 13 lots of the IPO.

5] Sona Comstar IPO closing date: The IPO became open for subscription today and it will remain open for bidders till 16th June 2021.

6] Sona Comstar IPO allotment date: The allotment date for Sona Comstar IPO is 21st June 2021. Initiation of refund will happen on 22nd June while shares will be credited to the Demat Account of allotees on 23rd June 2021.

7] Sona Comstar IPO listing date: The tentative date for Sona Comstar IPO listing is 24th June 2021.

8] Sona Comstar IPO investment limit: As one bidder allowed to bid for minimum one lot and maximum 13 lots, one’s minimum investment limit in Sona Comstar IPO is ₹14,841 ( ₹291 x 51) while the maximum limit allowed in the IPO is ₹1,92,933 ( ₹291 x 13 x 51).

9] Sona Comstar IPO promoter holding: Currently, Sona BLW Precision Forgings promoters hold 100 shares of the company that will go down at 67.30 per cent after listing.

10] Sona Comstar IPO issue type: The public issue is a book build issue with a face value of ₹10 per shares.

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