Samvardhana Motherson’s 90% Surge: QIP Offers Another Multibagger Opportunity?

Samvardhana Motherson share price volatile

Samvardhana Motherson International Ltd’s share price dropped by 2-3% during intraday trading on Tuesday. The stock opened at ₹196.00 on the BSE, up from its previous close of ₹193.75. However, it fell to ₹189.65, registering a 2-3% decline from the previous close. Despite the volatility, the stock recovered to reach an intraday high of ₹196.90.

Samvardhana Motherson International Limited announced in a release after market hours on Monday about its Qualified Institutional Placement (QIP). The company stated that, following approval from its Board of Directors during the August 2, 2024 meeting and approval from shareholders via a special resolution at the 37th Annual General Meeting on August 29, 2024, the Finance Committee also approved the launch of the QIP at its meeting on September 16, 2024.

The floor price for the Qualified Institutional Placement (QIP) has been set at ₹188.85 per equity share, based on the pricing formula outlined in SEBI’s ICDR Regulations. This floor price is 2.5% lower than the previous closing price of ₹193.75 on the BSE.

The final equity issue price will be decided by the company in consultation with the book-running lead managers. Over the past year, Samvardhana Motherson’s share price has surged by more than 90%, and has more than doubled from ₹82.80 two years ago, providing multibagger returns to investors.

Headquartered in Noida, Samvardhana Motherson International Ltd. is a global Indian manufacturer of automotive components, producing plastic parts, wire harnesses, and rearview mirrors for passenger vehicles. The company was established in 1986 as a joint venture with Japan’s Sumitomo Group.