Samvardhana Motherson International Limited (SAMIL) announced the successful completion of its capital raise of INR 6,438 crores (approximately USD 771 million) on September 20, 2024. The capital raise, which included a combination of equity and Compulsorily Convertible Debentures (CCDs), attracted strong interest from both domestic and international institutional investors.
The issuance comprised INR 4,938 crores in equity and INR 1,500 crores in CCDs, with a share price set at INR 190, slightly above the floor price of INR 188.85, as stipulated by SEBI ICDR regulations. Over 95% of the allocation was made to long-only investors, including mutual funds, insurance and pension funds, and foreign institutional investors, further diversifying and strengthening SAMIL’s shareholder base.
The funds raised will primarily be used to repay existing debt, bolstering the company’s balance sheet and positioning it to take advantage of future growth opportunities. A portion of the proceeds will also go toward general corporate purposes.
Laksh Vaaman Sehgal, Director of SAMIL, stated, “This transaction underscores the confidence investors have in our business model and long-standing relationships with global OEMs. The success of this capital raise reflects belief in our strategic direction and financial discipline, aimed at delivering sustained growth and enhancing shareholder value.”
The transaction, which was launched on September 16, 2024, was closed successfully four days later, on September 20, 2024.
The book running lead managers for the transaction included 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 counsel for SAMIL was provided by Khaitan & Co, while Cyril Amarchand Mangaldas and Linklaters served as legal counsel for the book running lead managers.