Samvardhana Motherson raises Rs 6,438 crore via qualified institutional placement

Auto components maker Samvardhana Motherson International on Monday said it has raised Rs 6,438 crore via an issue of securities.

The QIP issue garnered strong interest from both domestic and foreign institutional investors, leading to substantial demand over the issue size, it said in a regulatory filing.

Over 95 per cent of allocations were made to marquee long-only investors such as mutual funds, insurance and pension funds, and foreign institutional investors, it added.

The proceeds from the issuance will be mainly directed towards debt repayment, thereby further strengthening company's balance sheet and enhancing its position to capitalise on various growth opportunities, it stated.

Some of the proceeds will be used towards general corporate purposes, the company said.

Shares of the company on Monday ended 2.19 per cent up at Rs 207.25 apiece on BSE.