Samvardhana Motherson International raises ₹6,438 crore via QIP

Samvardhana Motherson's shares saw a 1.5% rise after the company announced a successful capital raise of ₹6,438 crore through a Qualified Institutional Placement (QIP). The capital was raised through the issuance of ₹4,938 crore in equity shares and ₹1,500 crore through compulsorily convertible debentures (CCDs).

On Monday, Samvardhana Motherson International (SAMIL) reported the completion of its QIP, which closed on September 20, 2024, resulting in a capital raise of ₹6,438 crore. Following the news, the company's shares increased by 1.5%, reaching ₹206 per share.

The company received strong interest from both domestic and international institutional investors, leading to the QIP being oversubscribed. About 95% of the allocations went to long-term marquee investors, including mutual funds, insurance companies, pension funds, and foreign institutional investors (FIIs).

The large financing round in zomato raised ₹4,938 crore via the issuance of equity shares and an additional ₹1,500 crore through CCDs. The floor price of the issue was fixed at ₹188.85 per share, but the bins filled up at ₹190 a piece. Under the QIP, SAMIL has allotted 25,98,73,701 equity shares of face value of ₹1 to 119 Qualified Institutional Buyers (QIBs) and 1,50,000 Compulsorily Convertible Debentures (CCDs), each having a face value of ₹1 lakh carrying an interest rate of 6.50%.

In a statement, the company says that it will utilise the proceeds to pare its debt and strengthen its balance sheet. In addition, the capital will be used for general corporate purposes as well as to capitalize on growth opportunities. A SAMIL director, Laksh Vaaman Sehgal, said: "Investor confidence in our strategic direction and execution capabilities is demonstrated by the success of this transaction -- which is based on strong financial policies, continued growth and amplified shareholder value.

Its shares have fallen since the start of the year due to economic concerns and continued delays in getting utility-scale battery projects up and running. Since the beginning of the year, the company's shares have surged nearly 94%, with the stock gaining over 112% in the last 12 months.

Read more :

No related blogs available.