Samvardhana Motherson Raises Rs 6,438 Crore via QIP Issue

Samvardhana Motherson International announced raising Rs 6,438 crore through a QIP issue, which saw significant interest from domestic and foreign investors. The funds will primarily be used for debt repayment, fortifying the company's balance sheet and growth prospects. Shares surged by 2.19% to close at Rs 207.25.

Samvardhana Motherson International has successfully raised Rs 6,438 crore by issuing securities, according to a statement released on Monday.

The QIP issue attracted notable interest from both domestic and foreign institutional investors, generating substantial demand over the specified issue size, the company disclosed in a regulatory filing.

Over 95% of the allocations were made to renowned long-only investors, including mutual funds, insurance and pension funds, and foreign institutional investors.

The funding will primarily be used for debt repayment, further strengthening the company's balance sheet and positioning it for future growth opportunities. Additionally, some of the proceeds will be allocated to general corporate purposes.

On Monday, the company's shares closed 2.19% higher at Rs 207.25 on the BSE.

(With inputs from agencies.)