Sona BLW Precision Forgings Acquires 54% Share Capital in Novelic

Sona BLW Precision Forgings has completed the acquisition of 54% share capital and voting rights in Novelic d.o.o. Beograd – Zvezdara (a company registered with Business Registers Agency having an office in Belgrade, Serbia) (Novelic) on September 4, 2023, through the acquisition of 51% of its share capital and voting rights from the existing shareholders and 3% of the share capital and voting rights as a result of capital infusion in Novelic, as per terms of the definitive documents executed in this regard.

With Novelic’s capabilities in sensors and perception solutions, Sona Comstar intends to expand in the area of autonomous and connected vehicle technologies. Total adjusted consideration is Euro 40.097 million payable under a deferred payment mechanism in three tranches, 60% of which is payable within 10 business days from the date when the ruling on capital increase becomes non-appealable and the remaining 40% in 2 yearly tranches of 20% each, as per the terms of the definitive documents.

Sona BLW Precision Forgings is one of the leading automotive technology companies in India. It is primarily engaged in designing, manufacturing, and supplying high-quality mission-critical automotive components such as differential assemblies, gears, conventional and micro-hybrid starter motors, etc.

Today, the stock opened at Rs 590, with a high and low of Rs 593.65 and Rs 578, respectively. The stock ended the trading session at Rs 579.85, down by 0.55%. In the last 6 months, the shares of the company have given more than 25% returns, and on a YTD basis, the stock has given about 35% returns.

The stock has a 52-week high of Rs 626, and a 52-week low of Rs 397.35. The company has a ROCE of 22% and an ROE of 18.3% with a market capitalisation of Rs 33,945 crore.

Investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.