Samvardhana Motherson International (SAMIL) announced on Monday that the company has successfully completed its capital raise through a qualified institutional placement (QIP). The company announced that it closed the QIP on September 20, 2024, and raised ₹6,438 crore. Following the announcement, shares of the company were trading higher by 1.5% at ₹206 per share. The company stated that its capital raise garnered interest from domestic as well as foreign institutional investors. As a result, the issue was oversubscribed. 95% of the allocations were made to marquee long-only investors which include mutual funds, insurance companies, pension funds, and foreign institutional investors (FIIs).
The issue fund raise was successfully completed through the issuance of equity and compulsorily convertible debentures (CCDs). The equity issue was worth ₹4,938 crore while the CCDs issued were worth ₹1,500 crore.
The floor price for the issue was ₹188.85 per share. However, the transaction for the subscriptions was conducted at a price of ₹190 per share.
Under the QIP, the company issued 25,98,73,701 equity shares with a face value of ₹1 to 119 qualified institutional buyers (QIBs). Additionally, the company allotted 1,50,000 6.50% CCDs with a face value of ₹1 lakh each.
SAMIL stated that the proceeds from the issue will be utilised for debt repayment and to solidify the company’s balance sheet. The funds will also aid the company to capitalise on growth opportunities. Further, the company stated that some of the proceeds will be used for general corporate purposes.
Laksh Vaaman Sehgal, director of SAMIL, said, “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.”
Shares of the company have risen by nearly 94% since the beginning of the year. The stock has gained over 112% in the past year.
