Auto components manufacturer Samvardhana Motherson Ltd. is planning to sell shares to eligible institutional investors and raise up to $1 billion through the same, sources privy to the matter told CNBC-TV18.
The QIP, according to the sources, is likely to be launched soon.
Samvardhana Motherson is likely to utilise the QIP proceeds either for an acquisition or to reduce its existing debt.
Samvardhana Motherson is looking towards reducing its debt to 1x EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) from the 1.5x currently.
As of the quarter that ended in June, Samvardhana Motherson’s Gross Debt stood at ₹20,114 crore, while net debt stood at ₹13,370 crore. The company’s gross debt increased by 16% and net debt jumped 29% on a sequential basis during the April-June period.
CNBC-TV18 has written to Samvardhana Motherson and comments are awaited from the management on this story.
Shares of Samvardhana Motherson are currently trading 0.5% lower at ₹192.26. The stock has risen 81% so far in 2024.
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The QIP, according to the sources, is likely to be launched soon.
Samvardhana Motherson is likely to utilise the QIP proceeds either for an acquisition or to reduce its existing debt.
Sources added further that Samvardhana Motherson has already appointed bankers for this potential share sale and the roadshows for the same may begin soon.
Samvardhana Motherson is looking towards reducing its debt to 1x EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) from the 1.5x currently.
As of the quarter that ended in June, Samvardhana Motherson’s Gross Debt stood at ₹20,114 crore, while net debt stood at ₹13,370 crore. The company’s gross debt increased by 16% and net debt jumped 29% on a sequential basis during the April-June period.
CNBC-TV18 has written to Samvardhana Motherson and comments are awaited from the management on this story.
Shares of Samvardhana Motherson are currently trading 0.5% lower at ₹192.26. The stock has risen 81% so far in 2024.