Samvardhana Motherson International, a major player in India’s auto parts industry, is gearing up to launch a share sale worth ₹59.45 billion this month, according to sources informed by Reuters. This fundraising initiative is one of the largest in India this year, following significant share sales by Vedanta and Adani Energy, which raised ₹83 billion.
With a market value of approximately ₹1,245 billion, Motherson supplies auto parts to major automakers both domestically and globally, including Maruti Suzuki and Mercedes-Benz, as reported by Reuters. Sources indicate that the company’s roadshows for the share sale have garnered positive responses from investors.
The funds are expected to be raised through a Qualified Institutional Placement (QIP), a method commonly used by Indian companies to secure investments from large institutions. The capital raised will be allocated towards debt repayment, expansion projects, and other capital expenditures, with the process anticipated to conclude by the end of the month.
Motherson has not yet commented on the share sale, according to Reuters. The company reported revenues of ₹973.25 billion and an operating profit of over ₹8,300 crore for the fiscal year ending in March. As of June, the company’s net debt stood at ₹13,114 crore.
The share sale is being managed by Axis Bank, HSBC, Jefferies, JM Financial, and Morgan Stanley. While Jefferies declined to comment, the other firms did not respond to Reuters’ inquiries. Listed on stock exchanges since 1993, Motherson is recognized as one of the world’s largest suppliers of auto parts.
The company’s clients include Tata Motors, Volkswagen, Ford, and Porsche. Beyond the automotive sector, Motherson also serves industries such as aerospace, consumer goods, and healthcare. Over the past two decades, the company has acquired 45 companies worldwide. India’s stock market has seen substantial growth, with the benchmark index up 16% this year, outperforming other Asian markets, according to Reuters.
