Samvardhana Motherson has opened its Qualified Institutions Placement (QIP) of shares at a floor price of ₹188.85 per share, as announced in a filing on September 16. The QIP aims to raise $715 million, making it one of the largest fund-raising exercises this year, following recent share sales by Vedanta and Adani Energy.
The company is also issuing compulsorily convertible debentures (CCDs), set to mature on September 20, 2027. These CCDs will be convertible into equity shares at a 13.83% discount.
The funds raised are expected to be used for debt reduction or to fund acquisitions, with Samvardhana Motherson actively exploring opportunities in both automotive and non-automotive sectors. The company’s net debt rose by ₹3,000 crore during the June quarter, driven by M&A activity and increased working capital needs.
