Samvardhana Motherson International Limited recently informed exchanges that the company has completed its capital raising of Rs 6,437 crores on September 20th, 2024.
The issue drew high interest from both local and foreign institutional investors, resulting in significant demand for the issue size. More than 95% of allocations were made to major long-only investors, including mutual funds, insurance and pension funds, foreign institutional investors (“FIIs”), etc. The issue led to further diversification and growth of the shareholder base.
In the exchange filing, the company shared, “SAMIL has become one of the few successful issuers of Equity and Compulsorily Convertible Debentures (“CCDs”) in a composite issuance (equity of INR 4,937 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 used mainly to repay debt, improving SAMIL’s balance sheet and putting it in a better position to capitalize on future growth possibilities. Some of the proceeds will be used towards general company objectives.
