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 News

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 News

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 News

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 News

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 News