Mumbai : Private equity major Blackstone Sona to sell shares of BLW Precision Forgings Ltd. 3,971.7 crore through a block trade today as per the terms of the deal.
The auto components will be sold at the floor price of the manufacturer’s shares. 500 per, or its closing price at a discount of 7.24% 539 on NSE. Blackstone will sell 63.5 million shares, or 10.87% stake in the firm, at the base price 3,177.3 crores.
Blackstone has the option to increase the size of the deal to a further 15.8 million shares, which it will receive another 794.3 crores.
Nomura Financial Advisory & Securities (India) Pvt. Ltd is the sole broker for trading.
The Blackstone deal has been caused by a rebound in the stock market after hitting a low in June. The markets have given 17% returns so far, and foreign investors are coming back to Indian equities.
Experts said this has created a window of opportunity for all existing shareholders to explore secondary share sales through block trades.
Blackstone block trade for gold BLW comes soon after KKR 9,185 crore block trade for Max Healthcare, which helped the private equity firm sell its entire stake in the hospital chain.
The business also follows a secondary sale by Uber, which sold its entire 7.78% stake in food delivery platform Zomato. 3,088 crore earlier this month.
Blackstone held 34.12 per cent stake in Sona BLW as of June 30, 2022. The private equity firm had sold a substantial part of its shareholding. 5,250 crore during the initial public offering (IPO) of the company in June last year.
Gold sold for its shares in IPO 291 each.
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