Samvardhana Motherson International (SAMIL) successfully concluded its capital raise of Rs 6,438 crore (USD 771 Mn approx.) on 20 September 2024.
The issue garnered strong interest from both domestic and foreign institutional investors, leading to substantial demand over the issue size. Over 95% of allocations were made to marquee long-only investors such as mutual funds, insurance and pension funds, foreign institutional investors (FIIs) etc.
The issue resulted in the further diversification and strengthening of the shareholder base. SAMIL has become one of the few successful issuers of Equity and Compulsorily Convertible Debentures (CCDs) in a composite issuance (equity of Rs 4,938 crore and CCDs of Rs 1,500 crore) (the issuance).
The transaction subscription was done at a share price of Rs 190/share while the floor price as per SEBI ICDR regulations was Rs 188.85/share. The proceeds from the issuance will be mainly directed towards debt repayment, thereby further strengthening SAMIL's balance sheet and enhancing its position to capitalize on various growth opportunities. Some of the proceeds will be used towards general corporate purposes.