Motherson Sumi Systems shares gained as much as 5.4 per cent on Thursday after the company decided to seek shareholders’ nod to raise over Rs 3,550 crore with an objective to meet long term goals. At 1.13 pm, shares of the company were trading 3.96 per cent up at Rs 342.30. The scrip opened the day at Rs 339 and has touched a high and low of Rs 347 and Rs 334.50, respectively, in trade so far. Later, the scrip closed 5.60 per cent up at Rs 347.70.
According to Motherson Sumi, this is a step towards gearing up for growth in line with the Vision 2020 announced by the company. It has set the target to become a $18 billion company by 2020.
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In a BSE filing, Motherson Sumi said, “The board has decided to enhance long term resources to support the growth potential and to have the ability to raise capital at an appropriate time and an enabling resolution would be sought from shareholders in the ensuing AGM to be held on August 31, 2016.”
Motherson Sumi will seek shareholders nod for preferential allotment of upto 17.80 million equity shares or Issue of FCCB of an amount upto Rs 562.5 crore to Sumitomo Wiring Systems (SWS), Japan and for qualified institutional placement for an amount not exceeding Rs 3,000 crore.
The auto ancillary company has grown with a CAGR (compounded annual growth rate) of over 40 per cent in the past 10 years.