Sona BLW Precision Forgings declined 3.10% to Rs 422.50, dragged down by large volumes.
On the BSE, over 2.40 crore shares of the company had changed at the counter as compared with an average trading volume of 0.85 lakh shares in the past two weeks.
On the NSE, 37.21 lakh shares of the company were traded in the counter so far as against an average trading volume of 14.02 lakh shares in the past three months.
The scrip extended its downfall for fourth consecutive session. The stock has lost 7.86% in four sessions.
On the technical front, the stock's daily RSI (relative strength index) stood at 35.720. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
On daily chart, the stock is trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 443.08, 447.91 and 493.90, respectively.
In the past one year, the stock has fallen by 30.93% while the benchmark Sensex has added 4.88% during the same period.
As per media reports, Blackstone was likely to sell 20.5% stake in Sona BLW Precision Forgings through a block deal on Monday. The floor price has reportedly been fixed at Rs 400 per share. Blackstone, through an entity named Singapore VII Topco III Pte Ltd., held 20.50% stake or 11,99,25,641 shares of Sona BLW Precision as on 31 December 2022.
As per reports, Blackstone had acquired Comstar Automotive Technologies in 2017, followed by the acquisition of Sona BLW Precision Forgings in 2018. The two entities were later reportedly merged to form Sona Comstar. In total, Blackstone invested around $385 million in both businesses, reports stated.
Singapore VII Topco III Pte Ltd. had sold shares worth Rs 5,250 crore at the time of Sona BLW Precision Forgings' IPO. Consequently, the shareholding of Singapore VII Topco III Pte Ltd. declined to 34.18% on expanded post issue equity base, from 66.28% pre-IPO.
Singapore VII Topco II Pte, Ltd had sold 7,94,33,500 shares, equivalent to 13.59% stake in the company, in August 2022. Consequently, its holding in the company came down to 20.52% post the said sale of shares.
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 reported a 23.9% jump in consolidated net profit to Rs 107.10 crore on 38.95% surge in revenue from operation to Rs 675.26 crore in Q3 FY23 over Q3 FY22.
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