Sona Comstar will acquire RED from EKL, as going concern, on slump sale basis, for an enterprise value of Rs 1,600 crore, subject to the terms of the agreement. RED is a leading supplier of critical components for railways, such as brakes and suspension systems for various rolling stocks. RED reported revenue of approximately Rs 950 crore and approximately EBIT of Rs 179 crore in FY24. The proposed acquisition of RED is expected to be earnings accretive for Sona Comstar right from the first year and offers significant growth opportunities. The Indian Railways market presents a compelling opportunity, driven by several long-term growth factors and significant entry barriers. India's extensive railway network, rapid urbanisation, and increasing investment in rail infrastructure are likely to drive demand for technologically advanced and engineered components. Aligned with our strategic goal of promoting clean mobility, railways stand out as the most environmentally friendly mode of motorised transport. Increasing railways' share in passenger and goods transportation is crucial for India to meet its net-zero emissions commitment. With the proposed acquisition of RED, Sona Comstar not only enters the railway component market but also contributes to greener mobility solutions,' Sona BLW Precision said in a statement. Vivek Vikram Singh, MD & group CEO of Sona Comstar, stated: 'The proposed acquisition of Railway Equipment Division aligns with our vision statement as we expand into the broader mobility sector. Once completed, the 'Railway Equipment Division' acquisition will enhance our clean mobility product offerings by adding a market-leading railway components business. The railway industry presents long-term growth opportunities, and with the 'Railway Equipment Division' business, we see significant potential to broaden our product range by incorporating advanced technology and engineered products.' The company also announced its earnings for the quarter ended on 30 September 2024. Sona BLW Precision Forgings has reported 16% rise in net profit to Rs 143.9 crore on a 17% growth in revenue to Rs 925.1 crore. Revenue from battery electric vehicles (BEV) was Rs 317.2 crore (up 53% YoY), accounting for 36% of the company's revenue. EBITDA improved by 14% YoY to Rs 254.9 crore, with an EBITDA margin of 27.6%. EV programs contribute 78% to the net order book of Rs 23,100 crores as of 30 September 2024. In September 2024, the company completed its Rs 2,400 crore qualified institutions placement (QIP). Sona Comstar issued 34,782,608 equity shares to qualified institutional buyers (QIBs) at an issue price of Rs 690 per equity share, including a premium of Rs 680 per equity share. The proceeds from the QIP will further bolster the company's capital structure to support its organic and inorganic growth strategies. Sona BLW Precision Forgings is one of the world's leading automotive technology companies. The company has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico and China. It is primarily engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components to automotive OEMs. Powered by Capital Market - Live

Sona BLW Precision Forgings has entered into an agreement (Agreement) with Escorts Kubota (EKL) to acquire the Railway Equipment Division of EKL (RED), as going concern, on slump sale basis, for an enterprise value of Rs 1,600 crore. RED is a leading supplier of critical components for Railways, such as brakes and suspension systems for various rolling stocks. RED reported revenue of approx. Rs 950 crore and approx. EBIT of Rs 179 crore in FY24. The proposed acquisition of RED is expected to be earnings accretive for Sona BLW Precision Forgings right from the first year and offers significant growth opportunities. Commenting on the proposed acquisition of RED, Vivek Vikram Singh, MD & Group CEO of Sona BLW Precision Forgings, said: We are delighted to step into railways components sector with the signing of the agreement to acquire Railway Equipment Division of EKL. The proposed acquisition of Railway Equipment Division aligns with our vision statement as we expand into the broader mobility sector. Once completed, the 'Railway Equipment Division' acquisition will enhance our clean mobility product offerings by adding a market-leading railway components business. The railway industry presents long-term growth opportunities, and with the 'Railway Equipment Division' business, we see significant potential to broaden our product range by incorporating advanced technology and engineered products.Powered by Capital Market - Live

Net profit of Sona BLW Precision Forgings rose 16.23% to Rs 143.95 crore in the quarter ended September 2024 as against Rs 123.85 crore during the previous quarter ended September 2023. Sales rose 17.11% to Rs 922.19 crore in the quarter ended September 2024 as against Rs 787.47 crore during the previous quarter ended September 2023. ParticularsQuarter EndedSep. 2024Sep. 2023% Var. Sales922.19787.47 17 OPM %27.3327.94 - PBDT265.38223.42 19 PBT202.79170.01 19 NP143.95123.85 16 Powered by Capital Market - Live

Sona BLW Precision Forgings will hold a meeting of the Board of Directors of the Company on 23 October 2024.Powered by Capital Market - Live

Sona BLW Precision Forgings has completed its Rs 2,400 crore Qualified Institutions Placement. The issue garnered strong interest from institutional investors and sovereign wealth funds, resulting in over 5.5 times subscriptions, underscoring investors' confidence in the Company's strategic vision and growth strategies. The QIP opened on 4 September 2024 and closed on 9 September 2024. Sona Comstar issued 34,782,608 equity shares to qualified institutional buyers (QIBs) at an issue price of Rs 690 per equity share, including a premium of Rs 680 per equity share. Some of the largest investment managers, such as SBI Mutual Fund, ICICI Prudential Mutual Fund, White Oak, Goldman Sachs Asset Management, Axis Mutual Fund, Aditya Birla Mutual Fund, Norges, BNP Paribas Fund, Fidelity International, Franklin Templeton and Fidelity Management & Research, amongst others, participated in the QIP, a positive reflection on the company's long-term growth prospects. The proceeds from the QIP will further bolster the company's capital structure to support its organic and inorganic growth strategies.Powered by Capital Market - Live

The company's board authorized and declared the opening of the issue on Wednesday, 4 September 2024. The floor price of Rs 699.01 is at a discount of 3.22% to the previous day's closing price of Rs 722.30 on the BSE. The company may offer a discount of not more than 5% on the floor price so calculated for the issue. The issue price will be determined by the company in consultation with the book running lead manager appointed for the Issue. Sona BLW Precision Forgings is one of the world's leading automotive technology companies. The company has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico and China. It is primarily engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components to automotive OEMs. The company's consolidated net profit increased 26.7% to Rs 141.95 on 21.8% rise in revenue from operations to Rs 891.18 crore in Q1 FY25 over Q1 FY24. The scrip rose 0.30% to currently trade at Rs 724.45 on the BSE. Powered by Capital Market - Live

Net profit of Sona BLW Precision Forgings rose 26.70% to Rs 141.95 crore in the quarter ended June 2024 as against Rs 112.04 crore during the previous quarter ended June 2023. Sales rose 21.85% to Rs 891.18 crore in the quarter ended June 2024 as against Rs 731.38 crore during the previous quarter ended June 2023. ParticularsQuarter EndedJun. 2024Jun. 2023% Var. Sales891.18731.38 22 OPM %27.9827.70 - PBDT249.50203.40 23 PBT188.88152.35 24 NP141.95112.04 27 Powered by Capital Market - Live