Automobile News

Motherson Sumi Shares Gain Over 5% On Fund Raising Plans

Motherson Sumi Shares Gain Over 5% On Fund Raising Plans

Mumbai: Shares of auto component firm Motherson Sumi Systems rose by over 5 per cent on Thursday after the company’s board decided to seek shareholders’ approval to raise over Rs 3,500 crore with an objective to enhance long-term resources.

The scrip gained 5.39 per cent to Rs 347 on BSE. At NSE, shares of the company moved up by 5.38 per cent to Rs 347.15. “The board decided to enhance long-term resources to support the growth potential and to have the ability to raise capital at an appropriate time that an enabling resolution would be sought from shareholders in the ensuing AGM to be held on August 31,” Motherson Sumi Systems Ltd (MSSL) said in a regulatory filing on Wednesday.

The company will seek the resolution for preferential allotment of up to 17.80 million equity shares of issues of FCCB of an amount of upto Rs 562.5 crore to Sumitomo Wiring System, Japan, it added.

Further, the resolution seeks to raise an amount of up to Rs 3,000 crore via qualified institutional placement.

“This is a step towards gearing up for the growth in line with the vision 2020 announced by the company. MSSL has set the target of becoming $18 billion company by 2020.”