BAJAJ BROKING
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 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.
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.
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.
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.
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.
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
Gold Rate Today | 14 January 2025 | Gold Price in India
14 Jan, 2025 | 40 Min. read
HCL Tech expands partnership with Microsoft to transform contact centres
14 Jan, 2025 | 2 Min. read
BEL secures new orders worth Rs 561 crore, boosting FY25 order book
14 Jan, 2025 | 2 Min. read
ITI Ltd secures Rs 64 crore contracts for Wi-Fi and CCTV systems
14 Jan, 2025 | 2 Min. read
JSW Energy secures LoI for 3.6 GW KSK Mahanadi power plant
14 Jan, 2025 | 2 Min. read
Biocon Biologics’ Johor Bahru Facility Receives FDA VAI Classification
13 Jan, 2025 | 2 Min. read
Interarch Secures ₹221 Crore Projects in Semiconductors & Energy Storage
13 Jan, 2025 | 2 Min. read
DMart Appoints Anshul Asawa as CEO Designate, Succeeding Ignatius Noronha
13 Jan, 2025 | 2 Min. read
JSW Energy Completes ₹630 Crore Acquisition of 125 MW RE Assets
13 Jan, 2025 | 2 Min. read
Laxmi Dental IPO- Key Objective & Deep Analysis
13 Jan, 2025 | 4 Min. read
How to Apply for Sat Kartar Shopping IPO & Check Allotment Status?
13 Jan, 2025 | 1 Min. read
How to Apply for Kabra Jewels IPO & Check Allotment Status?
13 Jan, 2025 | 1 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading