Samvardhana Motherson Finance To Raise 1,665 Crore Through IPO


Mumbai: Samvardhana Motherson Finance (SMFL), a components supplier to the automotive industry, will raise 1,665 crore through an IPO, which will open for subscription on May 2 and close on May 4, 2012.

The IPO issue includes a fresh issue of 1,334 crore and an Offer For Sale of 321 crore by Radha Rani Holdings. The book running lead managers to the issue are Standard Chartered Securities and JP Morgan.

Samvardhan Motherson Group is a focused and dynamic group providing customers with value added products, services and innovative solutions. They have core competencies in manufacturing of Electrical Distribution Systems, automotive rearview mirrors and polymer processing. They currently markets its products to clients like Volkswagen group, BMW, Daimler, Renault, Ford India, Tata Motors, and several others. The company has presence in 25 countries in marketing and distribution sector, manufacturing and construction facilities are in progress in India, Brazil, Mexico, Spain and Thailand.

The company intends to use the issue proceeds of 1,344 crore for funding pre-payment and repayment of debt facilities availed by company and its subsidiaries with 338.5 crore, funding strategic investments with an outlay of 627.5 crore and funding investments in rear-view vision systems business with 156 crore.