Samvardhana (SMFL)

Bangalore: SMFL (Samvardhana Motherson Finance Limited), is all set to hit the market with a Rs.1,665 crore IPO (Initial Public Offer), which is India’s largest private sector issue since Coal India’s IPO on  November, 2010.

SMFL is a multinational business with manufacturing and design capabilities providing full system solutions to diverse industries, which is incorporated in 2004. Samvardhana Motherson Finance provides an end-to-end range of design and manufacturing solutions to the automotive customers, including product concept and product design, engineering, manufacturing, sub-assembly and the production of integrated modules.

Issue Detail:

Issue Open: May 02, 2012 - May 04, 2012
Issue Type: 100 percent Book Built Issue IPO
Issue Size: Equity Shares of Rs. 10
Issue Size: Rs.1,665.00 Crore
Face Value: Rs.10 Per Equity Share
Issue Price: Rs.113 - Rs.118 Per Equity Share
Market Lot: 50 Shares
Minimum Order Quantity: 50 Shares
Listing At: BSE, NSE

ICRA has assigned an IPO Grade 4 to Samvardhana Motherson Finance Ltd IPO, which means the company has ‘Above Average Fundamentals.’

According per SMFL’s draft prospectus, Rs.339 crore will be used to repay group debt out of the total issues, while Rs.156 crore will be used to fund investments in its rearview vision systems business and Rs.628 crore will be used for prepayment of loans used to fund the Peguform acquisition. The rest will be for general corporate purposes.