Notification
No new Notification messages
Garuda Construction And Engineering IPO is Open!
Apply for the Garuda Construction And Engineering IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.
Trade Now, Pay Later with up to 4x Leverage
Never miss a good trading opportunity due to low funds with our MTF feature.

Samvardhana Motherson launches QIP to raise ₹6,398.6 crore

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Samvardhana Motherson has launched a QIP to raise ₹6,398.6 crore, resulting in a 5% equity dilution. The floor price is ₹188.85, 2.6% lower than the closing price. Additional funds will be raised through CCDs worth ₹2,250 crore.

Samvardhana Motherson news today

Samvardhana Motherson International Ltd. has initiated a Qualified Institutional Placement (QIP) to raise ₹6,398.6 crore. The auto component manufacturer made this announcement after receiving board approval on Monday evening. This strategic move is aimed at raising funds through institutional share sales, leading to a 5% dilution of the company's total equity.

SAMVRDHNA MTHRSN INTL LTD

Trade

210.154.09 (1.98 %)

Updated - 10 October 2024
215.00day high
DAY HIGH
207.30day low
DAY LOW
17727383
VOLUME (BSE)

Floor price and potential discount

The floor price for the QIP has been set at ₹188.85, representing a 2.6% discount to the closing price of ₹193.75 on Monday. Additionally, the company reserves the right to offer a further 5% discount on the floor price at its discretion. The share sale is expected to attract strong institutional interest, helping Samvardhana Motherson raise substantial capital for its expansion and operational needs.

Samvardhana Motherson’s financial position

As of the quarter ending in June 2024, Samvardhana Motherson's gross debt stood at ₹20,114 crore, marking a 16% increase sequentially. The net debt during the same period was ₹13,370 crore, reflecting a 29% rise. The QIP is expected to ease the company’s debt burden and provide financial flexibility for future growth initiatives, such as recent acquisitions.

Acquisition of REE Automotive

Alongside the QIP, Samvardhana Motherson announced its acquisition of an 11% stake in Israel-based REE Automotive for $15 million. This acquisition is aligned with the company's strategy to expand its global footprint and invest in emerging technologies, particularly in the electric vehicle sector.

Additional fund-raising through CCDs

In addition to the equity share sale, Samvardhana Motherson is raising funds through Compulsorily Convertible Debentures (CCDs). The CCD issuance will total ₹2,250 crore and will be available for subscription by eligible institutional investors. Each CCD is priced at ₹1 lakh, and they will mature on 20th September 2027 unless converted earlier into equity shares. The CCDs will convert into equity at a 13.83% discount to the weighted average price or floor price of ₹188.85, subject to a potential 5% discount as decided by the company.

Samvardhana Motherson's share price performance

The Samvardhana Motherson share price has gained significant momentum throughout 2024, increasing by over 80% year-to-date. On Monday, the stock closed at ₹193.75, up by 1.7%. This positive performance reflects investor confidence in the company’s growth prospects and financial strategies, including the QIP and its recent acquisition moves.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs + Users

icon-with-text

4.8+ App Rating

icon-with-text

4 Languages

icon-with-text

₹5000+ Cr MTF Book

icon-with-text