Samvardhana Motherson International Limited (SAMIL) has successfully raised INR 6,438 crore (approximately USD 771 million) through a Qualified Institutional Placement (QIP) on September 20, 2024. The offering received overwhelming interest from both domestic and international institutional investors, exceeding the issue size due to strong demand.
Over 95% of the allocation was made to prominent long-term investors, including mutual funds, insurance companies, pension funds, and foreign institutional investors. This has further diversified and strengthened SAMIL’s shareholder base.
The QIP, which comprised equity shares worth INR 4,938 crore and Compulsorily Convertible Debentures (CCDs) worth INR 1,500 crore, was completed at a share price of INR 190, slightly above the SEBI-prescribed floor price of INR 188.85 per share.
The raised funds will primarily be used for repaying debt, which will improve SAMIL’s financial position and enable it to pursue growth opportunities. A portion of the proceeds will also be allocated to general corporate expenses.
LakshVaaman Sehgal, Director at SAMIL, expressed gratitude to investors, saying, “This capital raise reflects investors’ trust in our business model and our ability to execute long-term strategies. The success of this transaction is a testament to the faith our investors have in our future direction and our commitment to delivering growth and shareholder value.” The transaction was launched on September 16 and successfully closed on September 20, 2024.
The lead managers for the QIP included top financial institutions such as HSBC Securities and Capital Markets, Axis Capital, Jefferies India, JM Financial, Morgan Stanley India, Batlivala & Karani Securities, BNP Paribas, IIFL Securities, and Kotak Mahindra Capital. Legal advisors to the deal were Khaitan & Co for SAMIL, and Cyril Amarchand Mangaldas and Linklaters for the lead managers.
Samvardhana Motherson International Limited (SAMIL) is a leading global engineering and manufacturing company, established in 1986 and listed on the BSE and NSE in 1993. The company specializes in providing solutions to Original Equipment Manufacturers (OEMs) in the automotive, technology, healthcare, aerospace, and logistics sectors. With over 400 facilities across 44 countries, SAMIL serves a diverse client base and ranks among the top 15 automotive suppliers worldwide. It was also named in TIME magazine’s list of the World’s Best Companies in 2024.
