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Motherson Sumi gains on fund raising plans

The company plans to raise funds by issuing equity shares to qualified institutional buyers

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SI Reporter Mumbai
Last Updated : Feb 13 2013 | 10:52 AM IST
Motherson Sumi Systems has gained 5% to Rs 200 after the company said it is planning to raise funds by issuing equity shares to qualified institutional buyers (QIB) and promoters of the company on preferential basis. 

“The board of directors of the company approved issue of shares to QIB through qualified institutions placement up to 44 million equity shares i.e. 7.5% of existing equity shares,” Motherson Sumi Systems said in a statement.

The board also approved allotment of up to 14.69 million shares representing 2.5% of existing equity shares to Sumitomo Wiring Systems Limited, a promoter of the company on preferential basis.

The company has decided to convene an Extra-ordinary General Meeting (EGM) of the shareholders of the company schedule to be held on March 18, 2013 to consider and seek enabling approval for the same.

Meanwhile, auto parts and equipment maker has reported 113% year-on-year jump in its standalone net profit at Rs 117 crore for the quarter ended December 31, 2012.

The stock opened at Rs 200 and hit a high of Rs 201 on NSE. A combined 748,378 shares have changed hands on the counter so far on both the exchanges.
 

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First Published: Feb 13 2013 | 10:44 AM IST

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