Sona Comstar on Saturday said it’s planning to launch an initial public offering (IPO) in two years after Blackstone Group completed the acquisition of a 33 percent stake in Sona BLW.
In an interview to CNBC-TV18, Sunjay Kapur, chairman, said the combined sales of the two companies would be $510 million.
On investments, he said, “Today it is predominantly internal combustion engines (ICE). Even though we are global suppliers, we are supplying mostly to ICE. However, all our new investments in 2019, especially, we are looking at a capital expenditure of close to $30 million which would be geared towards electrification and hybrid.”
Speaking about the demand for electric vehicles, Kapur said, “One is the consumer-driven demand and then is regulations. These are the two things that drive any policy change or any change in habits or environment. Today, I feel that the electrification of vehicles will depend very heavily on the ecosystem that is created.”
“The consumer has ranging anxiety, the consumer is not familiar with how electrification will work, where he or she will charge the vehicle, etc. So once that comes around and there is clarity on that, and we see infrastructure being built, I think the demand for electric vehicles will increase,” he added.