Samvardhana Motherson International is expected to begin offering shares this month for as much as Rs 59.45 billion. This action is a part of a larger trend where businesses are taking advantage of a robust stock market.
According to Dealogic data, the fundraising campaign is expected to be among the biggest in India this year, coming in second only to Vedanta and Adani Energy’s recent Rs 83 billion share sales. Maruti Suzuki and Mercedes-Benz are two of the domestic and foreign automakers that Motherson supplies parts to. The company has a market valuation of about Rs 1,245 billion.
Investors have responded favourably to the company’s roadshows for the share sale. By the end of the month, the fundraising campaign should come to a close. The money raised will be used for other capital expenses, expansion projects, and debt payments.
The money will be raised via a Qualified Institutional Placement (QIP), which is a typical strategy used by Indian businesses to entice big institutions to invest. For the fiscal year that ended in March, Motherson recorded revenues of Rs 973.25 billion and an operating profit of more than Rs 8,300 crore. The news wire stated that the company’s net debt as of June was Rs 13,114 crore.
Motherson is receiving guidance on the share sale from Axis Bank, HSBC, Jefferies, JM Financial, and Morgan Stanley. Motherson, one of the biggest producers of auto components worldwide, has been listed on stock exchanges since 1993. Tata Motors , Volkswagen, Ford Motor, and Porsche are among its clients. According to Reuters, the business has purchased 45 businesses worldwide over the previous 20 years and also provides services to the aerospace, consumer products, and health and medical industries.
According to the news wire, India’s stock market is expanding significantly, with the benchmark index up 16 per cent this year and beating its Asian peers.
