Samvardhana Motherson Finance drafts for 1750 Crore IPO

by khalid on 30/09/2011 · 1 comment

Samvardhana Motherson Finance Limited (SMFL) files preliminary papers with Securities Exchange Board of India to raise Rupees 1750 Crore from the primary market. SMFL is a manufacturing and Intergrated design company which focuses on automotive industry.  The company hold 36 percent stake in auto parts maker Motherson Sumi Systems.

 SMFL has filed for draft red herring prospectus (DRHP) with market regulator for its Initial public offer (IPO) sale. The company is planning to raise rupees 1750.5 Crore through the issue and this includes a fresh issue of rupees 1413 Crore shares. The remaining Rs 337.5 crore shares will be offloaded by Radha Rani Holdings Pte Lt. The company’s 5 percent issue is reserved for eligible shareholders and the price would be as per book building process.

To manage its public issue JP Morgan India Private Limited and Standard Chartered Securities (India) Limited has been appointed as the BRLMs (book running lead manager). The issued shares will be listed in both Bombay Stock exchange (BSE) and National Stock Exchange (NSE).

 SMFL has its presence in over 23 countries & it has 90 manufacturing facilities. They are also looking to establish new facilities in Brazil, Thailand and India. Recently the company was in news to buy 80 percent stake in Germany’s Peguform Group from Austria based firm Cross Industries. Peguform makes plastic components for vehicle exteriors, bumper systems, dashboards, cockpits and vehicle interior trims and had a sale of 1.37 Billion euros in FY10.

 “Bell the bull says: Over 18 listings this year had an issue size of less than 100 Cr with only 2 issues above 500 Crore.”

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