Samvardhana Motherson International Limited ("SAMIL") successfully concluded its capital raise of INR 6,438 Crores (USD 771 Mn approx.) on September 20th, 2024.
The issue garnered strong interest from both domestic and foreign institutional investors, leading to substantial demand over the issue size. Over 95% of allocations were made to marquee long-only investors such as mutual funds, insurance and pension funds, foreign institutional investors ("FIIs") etc. The issue resulted in the further diversification and strengthening of the shareholder base.
SAMIL has become one of the few successful issuers of Equity and Compulsorily Convertible Debentures ("CCDs") in a composite issuance (equity of INR 4,938 Crores and CCDs of INR 1,500 crores) ("the issuance"). The transaction subscription was done at a share price of INR 190/share while the floor price as per SEBI ICDR regulations was INR 188.85/share.
The proceeds from the issuance will be mainly directed towards debt repayment, thereby further strengthening SAMIL's balance sheet and enhancing its position to capitalize on various growth opportunities. Some of the proceeds will be used towards general corporate purposes.
Mr. Laksh Vaaman Sehgal, Director, SAMIL, commented, "This transaction reinforces investors' confidence in our robust business model based on our long-term relationships with global OEMs. The success of this transaction is a testimony to investors' belief in our strategic direction and our execution capabilities, which are based on prudent financial policies while delivering sustained growth and enhanced shareholder value. We remain thankful to our customers and investors for their continued trust in Motherson."
The transaction was launched on September 16th, 2024, and was successfully closed on September 20th, 2024.
The book running lead managers ("Book Running Lead Managers" or "BRLMs") for this transaction were HSBC Securities and Capital Markets (India) Private Limited, Axis Capital Limited, Jefferies India Private Limited, JM Financial Limited, Morgan Stanley India Company Private Limited, Batlivala & Karani Securities India Private Limited, BNP Paribas, IIFL Securities Limited, and Kotak Mahindra Capital Company Limited. Khaitan & Co acted as legal counsel to SAMIL whereas Cyril Amarchand Mangladas and Linklaters acted as the legal counsels to BRLMs.
Shares of Motherson Sumi Systems Limited was last trading in BSE at Rs. 205.05 as compared to the previous close of Rs. 204.20. The total number of shares traded during the day was 1655622 in over 16727 trades.
The stock hit an intraday high of Rs. 207.00 and intraday low of 200.85. The net turnover during the day was Rs. 338618111.00. |
