Motherson Sumi raises Rs 1,993 crore via QIP issue

New Delhi: Auto component firm Motherson Sumi Systems has raised Rs 1,993.44 crore via issuance of 62,884,827 shares to qualified institutional buyers.

The company's qualified institutional placement (QIP) issue opened on September 8 and closed on September 13 for receiving applications from investors, Motherson Sumi Systems (MSSL) today said in a regulatory filing.

For the QIP, 62,884,827 shares were issued to qualified institutional buyers at an issue price of Rs 317 after giving a discount of 2.79 per cent, it added.

"The response to the QIP has been extremely encouraging. We have always focused on consistent growth and creating sustainable value for all our stakeholders," MSSL Chairman V C Sehgal said.

Furthermore, an allotment of 17,762,460 shares of face value of Re 1 each has been made in favour of Sumitomo Wiring Systems (SWS) at the issue price of Rs 317 per share aggregating around Rs 563.07 crore, the company said.

Post this preferential allotment and the one under QIP, SWS shareholding continues to remain above 25 per cent, it added.

As declared in its Vision 2020, MSSL aims to have revenues of USD 18 billion by 2020. The company has been expanding through three main growth engines -- organic growth of existing businesses, joint ventures and acquisitions.

The company intends to use the net proceeds of the QIP issue for meeting general corporate purposes and achieving the objectives in MSSL's five-year plan 'Vision 2020'.