Shares of Sona BLW Precision Forgings fell as much as 4.5 percent in trade on Wednesday after 2.2 crore shares or 3.7 percent of the company's total equity exchanged hands in a large trade.

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The shares changed hands at an average price of Rs 507 per share, thereby taking the total transaction value to Rs 1,093 crore. Buyers and sellers in the trade are not confirmed yet, but the company's promoter entity is likely to be the seller in this transaction.

Sources privy to the developments told CNBC-TV18 on Tuesday that Sona BLW's promoter entity Aureus Investment Private Ltd. is likely to sell up to 3.25 percent stake in the company through a block deal on Wednesday. Including the green shoe option, the deal size was said to be worth Rs 950 crore.

Aureus Investment Private Ltd held a 33 percent stake in Sona BLW Precision Forgings (Sona Comstar), as on March 31, 2023.

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Back in March 2023, private equity firm Blackstone, which held a stake in Sona BLW through an entity called Singapore VII Topco III PTE Ltd, sold nearly 12 crore shares in the company for Rs 4,917 crore in the open market at an average price of Rs 410.04 apiece.

Some of the marquee buyers in this deal were the Government of Singapore, Societe Generale, Fidelity Asian Values Plc, BNP Paribas Arbitrage, and the Monetary Authority of Singapore. Among mutual funds that bought stakes included HDFC Mutual Fund and ICICI Prudential.

Sona Comstar was formed by the merger of Sona BLW and Comstar Automotive in 2019. It is involved in 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.

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It supplies components to automotive original equipment manufacturers (OEMs) across the US, Europe, India, and China, for both electrified and non-electrified powertrain segments and is not dependent on a single product, vehicle segment, customer or geography.

The company is also one of the two largest exporters of starter motors from the country besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India.

Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicles maker, Ashok Leyland, Daimler, Escorts, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo, and Volvo Eicher.

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(Edited by : Pradeep John)

First Published:May 30, 2023 9:46 PM IST