Motherson Sumi Systems Ltd. rose as much as 3.4 percent to Rs 339 after it announced the launch of its Rs 2,000 crore qualified institutional placement offer.
The flagship company of the Samvardhana Motherson Group has set the price band at Rs 317 to Rs 327.95 per share, according to the term-sheet accessed by Bloomberg. The final pricing will be decided on September 13.
Motherson has appointed JM Financial, UBS Securities, ICICI Securities, IDFC Bank and IIFL Holdings as the book running lead managers.
Apart from qualified institutional placement, Motherson will also issue 1.78 crore shares to Sumitomo Wiring Systems (SWS) through a preferential issue to ensure that the Japanese company’s holding is maintained above 25 percent. SWS is classified as a foreign promoter of the company and it currently holds 25.29 percent stake in Motherson. The Indian promoter’s shareholding will fall to approximately 35 percent from the current holding of 37.5 percent, according to BloombergQuint’s calculations.
Earlier in the annual general meeting, shareholders had approved equity issue to raise up to Rs 3,000 crore.