Blackstone part-exits Indian auto components maker

The private equity firm sold approximate 79.4m shares for INR 509.10 apiece, according to stock exchange data, reducing its stake in Sona BLW from 34.1% to 20.5%. Based on the August 17 closing price, its remaining position is worth INR 64.7bn.

Blackstone paid USD 300m for a 33% stake in Sona BLW in 2018, and then – working alongside promoter Sunjay Kapur – supported a merger with Comstar Automotive Technologies, one of its own portfolio companies. The private equity firm acquired full ownership of Comstar earlier the same year for USD 150m, taking out Argyle Street Management and the Chandra family.

Sona BLW’s stock dropped below INR 508 in response to the partial exit, but then stabilised to close at INR 523.70 on August 22, giving the company a market capitalisation of around INR 304bn.

It is the second significant public market exit by a global private equity firm in India in a matter of days. KKR made a full exit from hospital operator Max Healthcare Institute – having also invested in the business by merging it with an existing portfolio company – with proceeds of INR 91.9bn.

Sona Comstar supplies highly engineered systems and components to original equipment manufacturers (OEMs) across the US, Europe, India, and China. Its factories in India, China, Mexico, and the US produce assemblies, gears, starter motors, belt-driven starter generator (BSG) systems, electric vehicle traction motors, and motor control units for all vehicle categories.

For the 12 months ended March 2022, Sona Comstar generated revenue of INR 21.5bn on a consolidated basis, up from INR 15.7bn the previous year. Over the same period, net profit rose from INR 2.1bn to INR 3.6bn.

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• Topics
• South Asia
• Open market
• Industrials
• India
• The Blackstone Group
• automobiles
• manufacturing