Thursday, May 03, 2012
Samvardhana Motherson Finance gets muted response on second day of issue
Samvardhana Motherson Finance’s (SMFL) initial public offer was subscribed 0.08 times on the second day of issue. As per the data available with the NSE, total bid of 97,21,300 shares were received for the issue of 12,76,96,518 shares and 88,300 bids were received at the cut-off price till 1600hrs.
SMFL is looking forward to raise Rs 1,665 crore via initial public offer (IPO) and the company has fixed the price band at Rs 113 - Rs 118. The component supplier to the automotive industry is offering to sale stake of Radha Rani Holdings worth Rs 321 crore and fresh issue of equity shares worth Rs 1,344 crore.
The issue closes on May 4, 2012. Standard Chartered Securities (India) and J P Morgan India are the book running lead managers and Link Intime is the registrar to the issue.
The company will be using issue proceeds towards funding pre-payment and repayment of debt facilities, funding strategic investments and for funding investments in rear-view vision systems business.
The company is primarily engaged in providing full system solutions to automotive industry. The product portfolio include rear view vision systems, wiring harnesses, polymer processing and tool manufacturing, elastomer processing, IT and design engineering for the automotive and non-automotive sectors among the others. The company presently manufactures from 90 facilities with a presence in 23 countries across the world, including 23 locations outside India. Also, is in process of establishing new manufacturing facilities in India, Brazil and Thailand.