Motherson Sumi Systems rose 1.12% to Rs 322.10 at 10:35 IST on BSE after the company successfully completed raising of funds amounting to Rs 1993.44 crore by way of qualified institutional placement issue.
The announcement was made on Saturday, 17 September 2016.Meanwhile, the BSE Sensex was up 67.10 points, or 0.23%, to 28,666.13.
On BSE, so far 32,113 shares were traded in the counter, compared with average daily volume of 3 lakh shares in the past one quarter. The stock hit a high of Rs 324.45 and a low of Rs 318.55 so far during the day. The stock hit a 52-week high of Rs 358.55 on 2 August 2016. The stock hit a 52-week low of Rs 206.20 on 25 February 2016. The stock had underperformed the market over the past one month till 16 September 2016, falling 0.89% compared with Sensex's 1.9% rise. The scrip had, however, outperformed the market in past one quarter, gaining 9.06% as against Sensex's 7.82% rise.
The large-cap company has equity capital of Rs 132.29 crore. Face value per share is Re 1.
The qualified institutional placement (QIP) issue opened on 8 September 2016 and was closed for receiving applications from investors on 13 September 2016. 6.28 crore shares were issued to qualified institutional buyers at an issue price of Rs 317 per share constituting a discount of 2.79% or Rs 9.10 per share to the floor price of Rs 326.10 per share aggregating to Rs 1993.44 crore on 16 September 2016.
The company intends to use the net proceeds of the issue for meeting general corporate purpose and for achieving the company's objectives in five year plan 'Vision 2020', wherein company aims to have revenues of $18 billion by 2020.
Further, preferential allotment of 1.77 crore shares was made in favour of Sumitomo Wiring Systems (SWS) at the issue price of Rs 317 per share on 12 September 2016 aggregating Rs 563.07 crore. Post this preferential allotment and the QIP allotment, SWS shareholding continues to remain above 25%.
The board of directors in a meet on 3 August 2016 had resolved to evaluate various fund raising options including issue of qualified institutional placement and also a preferential issuance to SWS, one of the promoters of the company.
Motherson Sumi Systems' consolidated net profit rose 15.8% to Rs 439.36 crore on 16.1% increase in net sales to Rs 10352.33 crore in Q1 June 2016 over Q1 June 2015.
Motherson Sumi Systems is one of the world's fastest growing specialized automotive component manufacturing company for original equipment manufacturers (OEMs). It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).
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