Samvardhana Motherson Sets Floor Price For QIP At 2.5% Discount; Shares Fall

Samvardhana Motherson International Ltd. authorised the opening of its fundraise through qualified institutional placements at a floor price of Rs 188.85 per share.

The company's board approved qualified institutions' placement of equity shares of face value of Re 1 per share and convertible debentures of face value of Rs 1 lakh each, an exchange filing by the company said.

The auto components and equipment manufacturer, at its meeting held on Aug. 2, approved raising funds by offloading 33.8 crore equity shares. The floor price set for the issue is at a discount of 2.5% from its previous close on the BSE.

The company's board approved and adopted the preliminary placement document dated Sept. 16, together with the application form in connection with the issue, the filing said.

Meanwhile, 1.06 million shares of the company changed hands during market opening on Tuesday, according to Bloomberg data.

Samvardhana Motherson's stock fell as much as 2.16% during the day before paring loss to trade 0.41% lower at Rs 193 apiece, compared to a 0.03% rise in the benchmark Nifty 50 as of 9:40 a.m.

It has risen 94% during the last 12 months and 89% year-to-date. Total traded volume so far in the day stood at 3.4 times its 30-day average. The relative strength index was at 52.

Eighteen out of 23 analysts tracking the company have a 'buy' rating on the stock, three suggest a 'hold' and two have a 'sell', according to Bloomberg data. The average 12-month analysts' price target implies a potential upside of 2%.