Motherson to launch $ 715 million share sale

06 Sep 2024 CW Team

The fund-raising exercise stands to be one of India's biggest this year, data from Dealogic shows, lagging only $ 1-billion share sales by Vedanta and Adani Energy in recent months. With a market capitalisation of about $ 15 billion, Motherson supplies parts to domestic and global automakers such as Maruti Suzuki and Mercedes-Benz.

Motherson's roadshows for the fund-raising exercise are "finding support from investors," said one of the two sources, who sought anonymity as the planning process is confidential. The exercise is expected to be completed by month-end, the sources said, adding that the company plans to use the funds raised to repay debt, fund some expansion and certain capital expenditure. The funds will be raised through a so-called Qualified Institutional Placement (QIP), which listed Indian companies use to raise funds from large institutions.

Motherson reported revenues of $ 11.75 billion and operating profit of more than $ 1 billion in the fiscal year that ended in March. Its net debt at the end of June stood at $ 1.58 billion.

Axis Bank, HSBC, Jefferies, JM Financial and Morgan Stanley are advising the company on the share sale. Jefferies declined to comment, while the other four did not respond to Reuters' requests for comment.

Motherson says it is among the world's largest suppliers of auto parts and also counts Tata Motors, Volkswagen, Ford Motor and Porsche among its clients. Listed on the stock exchanges in 1993, the company also supplies parts to the aerospace, consumer goods and health and medical industries. It has acquired 45 companies in India and globally over the past two decades. India's stock market is on a hot streak, with the benchmark index up 16% this year, outdoing Asian peers.

One of India's largest makers of auto parts, Samvardhana Motherson International, will launch a share sale of up to $ 715 million this month, two sources briefed on the matter told Reuters, the latest company to tap a booming stock market.The fund-raising exercise stands to be one of India's biggest this year, data from Dealogic shows, lagging only $ 1-billion share sales by Vedanta and Adani Energy in recent months. With a market capitalisation of about $ 15 billion, Motherson supplies parts to domestic and global automakers such as Maruti Suzuki and Mercedes-Benz.Motherson's roadshows for the fund-raising exercise are finding support from investors, said one of the two sources, who sought anonymity as the planning process is confidential. The exercise is expected to be completed by month-end, the sources said, adding that the company plans to use the funds raised to repay debt, fund some expansion and certain capital expenditure. The funds will be raised through a so-called Qualified Institutional Placement (QIP), which listed Indian companies use to raise funds from large institutions.Motherson reported revenues of $ 11.75 billion and operating profit of more than $ 1 billion in the fiscal year that ended in March. Its net debt at the end of June stood at $ 1.58 billion.Axis Bank, HSBC, Jefferies, JM Financial and Morgan Stanley are advising the company on the share sale. Jefferies declined to comment, while the other four did not respond to Reuters' requests for comment.Motherson says it is among the world's largest suppliers of auto parts and also counts Tata Motors, Volkswagen, Ford Motor and Porsche among its clients. Listed on the stock exchanges in 1993, the company also supplies parts to the aerospace, consumer goods and health and medical industries. It has acquired 45 companies in India and globally over the past two decades. India's stock market is on a hot streak, with the benchmark index up 16% this year, outdoing Asian peers.

Infrastructure Energy

23 Sep 2025

Serentica Signs India’s First Load-Following 100 MW PPA

Serentica Renewables on Thursday announced an agreement with the state-owned Solar Energy Corporation of India (SECI) for a 100 MW renewable energy project. This marks India’s first-ever “load-following” power purchase agreement (PPA), designed with SECI and state DISCOMs to match the seasonal electricity demand of offtakers. Under this PPA, the supplier commits to delivering power according to the buyer’s actual demand on an hourly or sub-hourly basis.The agreement requires Serentica to meet 80 per cent of the specified hourly demand each month, with obligations ranging from 17 MW dur..

Infrastructure Energy

23 Sep 2025

GK Energy Raises Rs 139.3 Million From Anchor Investors

GK Energy, a provider of engineering, procurement, and commissioning services for solar-powered agricultural water pumps, raised Rs 139.3 million from 12 anchor investors on 18 September, a day before its initial public offering (IPO) opened to the public.The Rs 464.3 million IPO will open for all investors on 19 September at a price band of Rs 145–153 per share, with bidding closing on 23 September. The company plans to issue fresh shares worth Rs 400 million, while promoters will sell 4.2 million shares valued at Rs 64.26 million at the upper price band through an offer-for-sale.In its fil..

Infrastructure Urban

23 Sep 2025

IL&FS To Sell 15% Stake in Roadstar InvIT To Cut Debt

Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has decided to sell its entire 15 per cent residual stake in Roadstar Infra Investment Trust (InvIT) to reduce liabilities. Axis Bank has been appointed to identify potential buyers for the 15.1 per cent holding.A spokesperson from IL&FS Group said, “Sale of IL&FS' 15 per cent stake in Roadstar InvIT is a key part of the Group’s resolution initiative and approved framework. Steps, including appointing consultants and intermediaries, will be taken in due course.”Earlier in March 2025, IL&FS had listed Road..