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Samvardhana Motherson Finance Ltd IPO (Samvardhana IPO) Detail

May 2, 2012 - May 4, 2012

Samvardhana IPO is a book built issue of Rs 1,665.00 crores.

Samvardhana IPO bidding started from May 2, 2012 and ended on May 4, 2012.

Samvardhana IPO price band is set at ₹113 to ₹118 per share. The minimum lot size for an application is 50 Shares. The minimum amount of investment required by retail investors is ₹5,900.

J.P. Morgan India Private Limited and Standard Chartered Securities (India) Limited are the book running lead managers of the Samvardhana IPO, while Link Intime India Private Ltd is the registrar for the issue.

Refer to Samvardhana IPO RHP for detailed information.

Samvardhana IPO Details

IPO Date May 2, 2012 to May 4, 2012
Listing Date [.]
Face Value ₹10 per share
Price Band ₹113 to ₹118 per share
Lot Size 50 Shares
Total Issue Size[.] shares
(aggregating up to ₹1,665.00 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

Samvardhana IPO Reservation

Samvardhana IPO offers 127,696,518 shares. 50,340,323 (39.42%) to QIB, 20,996,681 (16.44%) to NII, 48,992,257 (38.37%) to RII, 7,367,257 (5.77%) to employees. 979,845 RIIs will receive minimum 50 shares and (sNII) and (bNII) will receive minimum 1,700 shares. (in case of oversubscription)

Investor Category Shares OfferedMaximum Allottees
Anchor Investor Shares Offered-NA
QIB Shares Offered50,340,323 (39.42%)NA
NII (HNI) Shares Offered20,996,681 (16.44%)
Retail Shares Offered48,992,257 (38.37%)979,845
Employee Shares Offered7,367,257 (5.77%)NA
Total Shares Offered127,696,518 (100%)

Samvardhana IPO Lot Size

Investors can bid for a minimum of 50 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 50 ₹5,900
Retail (Max) 33 1650 ₹194,700
Lot Size Calculator

About Samvardhana Motherson Finance Ltd

Incorporated in 2004, Samvardhana Motherson Finance Limited (SMFL) is a multinational business with manufacturing and design capabilities providing full system solutions to diverse industries. SMFL provides an end-to-end range of design and manufacturing solutions to the automotive customers, including product concept and product design, engineering, manufacturing, sub-assembly and the production of integrated modules.

The business portfolio includes wiring harnesses, rearview mirrors, molded plastic parts, injection molding tools, assemblies and modules, elastomer products, cutting tools and thin film coating metals, IT services, design engineering, cabins for off-highway vehicles, HVAC/ air conditioning systems for automobiles, lighting systems, air intake manifolds, air compressors, paint coating equipment, auxiliary equipment for injection molding machines and automotive manufacturing engineering services.

The major customers of the company include the five largest automotive OEM manufacturers in the world, as well as the largest automotive OEM manufacturer in India. SMFL has 90 manufacturing facilities with a presence in 23 countries across the world, including 23 locations outside India and the company is in the process of establishing new manufacturing facilities in India, Brazil and Thailand.

Company Financials

ParticularsFor the year/period ended (in Rs. Million)
Total Income405.9233.0122.8
Profit After Tax (PAT)

Objects of the Issue (Samvardhana IPO Objectives)

The object of the issue are to:

1. Funding pre-payment and repayment of debt facilities availed by company and its subsidiaries;
2. Funding strategic investments;
3. Funding investments in rear-view vision systems business;
4. General corporate purposes.

Samvardhana IPO Review (Avoid)

[Dilip Davda]  

Although this offer is from a well known Motherson Sumi group that has remarkable performance for its listed venture Motherson Sumi Systems Ltd., this offer is being made at a greedy price.

Remark: High Risk-Low Yield.

Read detail review...

Samvardhana IPO Subscription Status (Bidding Detail)

The Samvardhana IPO is subscribed 0.23 times on May 4, 2012 5:00:00 PM. The public issue subscribed 0.01 times in the retail category, 0.57 times in the QIB category, and 0.01 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Samvardhana Motherson Finance IPO Grading

ICRA has assigned an IPO Grade 4 to Samvardhana Motherson Finance Ltd IPO. This means as per ICRA, company has 'Above Average Fundamentals'. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Read Samvardhana Motherson Finance Ltd IPO Grading Report.

IPO Notices

External Link

Samvardhana Motherson Finance Ltd (SMFL) IPO Withdrawn

Samvardhana Motherson Finance Ltd (SMFL) has withdrawn its Rs 1665.00 Crore IPO due to poor response from investor across the board.

SMFL public issue subscribed 0.23 times on its final day of subscription. QIB quota of the IPO subscribed most with bids received for 57% shares. The response in Non Institutional, Retail Individual and Employee Reservation quota was worst in recent years. All of these categories received bids only for 1% of the quota allocated.

As per experts, wrong timing of the IPO and stiff pricing of the shares as two major reasons for the failure of Samvardhana IPO.

Samvardhana IPO Prospectus

Samvardhana IPO Rating

Rating:Rated 3.3 stars
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Samvardhana Motherson Finance Ltd Contact Details

Samvardhana Motherson Finance Ltd
2nd Floor, F-7, Block B-1,
Mohan Cooperative,
Industrial Estate Mathura Road, Delhi
Phone: 91 11 4055 5940

Samvardhana IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Samvardhana IPO - Buy or Not

Samvardhana IPO Recommendation Summary

Review By Subscribe Neutral Avoid
Brokers 0 0 2
Members 0 0 0

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Samvardhana IPO FAQs

Samvardhana IPO is a main-board IPO of [.] equity shares of the face value of ₹10 aggregating up to ₹1,665.00 Crores. The issue is priced at ₹113 to ₹118 per share. The minimum order quantity is 50 Shares.

The IPO opens on May 2, 2012, and closes on May 4, 2012.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Samvardhana IPO opens on May 2, 2012 and closes on May 4, 2012.

Samvardhana IPO lot size is 50 Shares, and the minimum amount required is ₹5,900.

You can apply in Samvardhana IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Samvardhana IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Samvardhana IPO allotment status.

The Samvardhana IPO listing date is not yet announced. The tentative date of Samvardhana IPO listing is [.].
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Samvardhana IPO Message Board

Ranked Members of Forum  Ranked Members | Most Liked Members



45. C.A |   Link |  Bookmark |May 7, 2012 12:33:05 AM
Indian rating agencies miss guide retailes only foren agencies 100% correct. Look 5/5 rating MOIL ,L&T FIN,MCX, trading in huge discount.
44. s c agarwal |   Link |  Bookmark |May 6, 2012 10:28:55 PM
sebi shoud check how icra given 4/5 rating to issue and if any thing found wrong then action should be taken against icra
44.1. IPO MR |   Link |  Bookmark |May 7, 2012 11:49:38 AM
I am surprised to read such naive comments. People should know that credit rating and SEBI has nothing to do with the pricing. SEBI only checks/questions the contents of the offer document. They dont confirm its contents. Most of the time SEBI is not aware of the pricing. Similarly, credit rating agency comments on the strength of the business, product and management among other things.

Its really sad to read such naive comments from regular readers and investors in the IPO.
43. C.A |   Link |  Bookmark |May 6, 2012 2:16:15 PM
Condition of govt. And govt. Companies are very veak past psu ipo/fpos are trading upto 70% discount. NBCC,NHPC,NTPC,ONGC,PFC,MOIL,SJVNL,PTC FIN,P&S BANK,SHIPING CO,ENGINEARS INDIA,think 100 times before investing in any PSU IPO/FPO.
42. GOEL BERIWALA |   Link |  Bookmark |May 5, 2012 3:02:00 PM


42.1. gundu anna |   Link |  Bookmark |May 5, 2012 3:13:03 PM (500+ Posts, 100+ Likes)
You have to understand that SEBI doesnot have any role to play in fixing the issue price. SEBI will only check company credential. Investors decide the what should be the price of the issue. If we think the the price is not right or overpriced, its simple one should not happened in case of motherson. We should not blame our failure on others.

Imagine SEBI guarantees an IPO doesnot go below issue price, then every tom dick harrys of the world will sell their house put the money in stock market!!! which none of us want!!!!!!
42.2. STAR IPO KING |   Link |  Bookmark |May 5, 2012 9:34:53 PM
i think merchent banker sets the issue price and sebi officiel passes it .
41. u.kumar |   Link |  Bookmark |May 5, 2012 11:25:06 AM
Plastene India , a manufacturer of jumbo bags and BoPP woven sacks, is launching its initial public offer of 92,55,290 equity shares of face value of Rs 10 each on May 9, 2012, with a price band of Rs 81-84 a share. The issue comprises of employees' reservation of upto 55,290 equity shares.

The company aims to raise around Rs 74.97-77.74 crore via public issue, by diluting 25.89% stake in the company. One can apply for minimum 75 equity shares and in multiples of 75 shares thereafter.

Plastene intends to expand manufacturing facilities of jumbo bags and BoPP woven sacks at its existing units at Nani Chirai in the Kutch district of Gujarat and at Rajpur in the Mehsana district of Gujarat. The company also intends to venture into manufacturing of new product called as block bottom valve bags used for packaging of cement, pharma food grains etc.

Equity shares are proposed to be listed on the BSE and National Stock Exchange. The issue will close on May 15, 2012.

Motilal Oswal Investment Advisors Pvt Ltd is the book running lead manager to the issue.
40. C.A |   Link |  Bookmark |May 5, 2012 12:06:33 AM
Look -PFC,NBCC,NHPC,NTPC,SJVNL,MOIL,NMDC,P&S BANK,SHIPING CO.,ENGINEARS INDIA,SJVNL,PTC FIN,ONGC all are navratan/maharatan 4,5 rating PSU but trading upto 50% discount about 90% 4,5 rating stocks are trading in huge discount it indicate any thing is wrong in indian rating agencies.
39. Manoj jain |   Link |  Bookmark |May 4, 2012 8:43:46 PM
Plastene India Ltd 9th May-15th May
38. santonu |   Link |  Bookmark |May 4, 2012 8:43:42 PM (200+ Posts)
The issue size is very large , that is the main reason of under subscripton. It could have been subscribed 0.60 till end .See the QIB figures ,it is not so bad considering the size of the issue. If the issue size is around 150-200 crore , the issue could have beeen 3-4 times over subscribed.
It is not a bad company and no complaint against te rating agency. I will blame the failure to issue size only which is extremely large
38.1. Santosh. |   Link |  Bookmark |May 4, 2012 10:39:11 PM
if price 30 then issue size reduced 400 cr
37. gundu anna |   Link |  Bookmark |May 4, 2012 8:09:47 PM (500+ Posts, 100+ Likes)
Dear All,

Mothersons failure today is the gain for all retail investors. had u applied and this got subscribed, u would have lost heaviely. Good that each of us made money(saved money) today.

Once again let me congradulate all. If we use our brains, we dont have to blame SEBI/operators. Most of the time V blame our failure on others.

Best regards
36. C.A |   Link |  Bookmark |May 4, 2012 8:07:51 PM
Ek company aur bhag gai ,ab 4,5 rating daynay wali indian rating agencies ki what lagnay wali hi.
35. echaos |   Link |  Bookmark |May 4, 2012 7:59:01 PM
this IPO has raised serious concerns over ICRA , how can they give grade 4 to a lossmaking company....
34. The IPO Analyst |   Link |  Bookmark |May 4, 2012 7:06:41 PM
Confirmed news... IPO has been withdrawn.
33. hbk |   Link |  Bookmark |May 4, 2012 5:49:47 PM
Top Contributor Top Contributor (300+ Posts, 100+ Likes)
No interest from investors. 23.3% at 4.45pm. Dates will be extended or price band will be reduced. Even TBZ was subscribed higher number of times. Not going well for motherson group.
32. Priya Jain |   Link |  Bookmark |May 4, 2012 5:13:20 PM
Issue subscribed around 0.23 times 4 PM. Either date will be extend innext 1 hrs or it will be withdrawn.....its all as expected :(
31. AJEET P SINGH |   Link |  Bookmark |May 4, 2012 5:11:43 PM
EMP = 0.0022
TOTAL = 0.1925
30. Ranjana Pandey |   Link |  Bookmark |May 4, 2012 4:41:50 PM
The loss that is appearing includes Rs 67 crore which is a one time right off of the acquisition cost of Peguform and almost about Rs 70 crore of mark to market loss. Looking at the growth chart of motherson, one must aaply for shares. Gwoth is guaranteed.
29. Ryan |   Link |  Bookmark |May 3, 2012 11:26:12 PM
Hi All,
In current scenario, its even wastage of time to talk about such ipos.
There is only 100% risk in these issues. No chance of gains.
29.2. SOMPRASH |   Link |  Bookmark |May 4, 2012 8:17:18 PM
Talking about such types of IPOs is not a wastage of time.

After good discussions , we are able to avoid these types of IPOs.

From the very first day , I was highlighting the loss of 152.9 crore.
29.3. Ryan |   Link |  Bookmark |May 4, 2012 11:57:46 PM
You didn't get my point. Even dicussion abt these ipos shd be avoided.
Why to waste your precoius time in discussing useless ipos.
28. GOOD BROKER |   Link |  Bookmark |May 3, 2012 11:13:25 PM
27. gundu anna |   Link |  Bookmark |May 3, 2012 10:26:52 PM (500+ Posts, 100+ Likes)
I have decided Not to apply for samvardhana IPO for the reasons mentioned in my previous post.

For those applying, I wish good luck!!!
26. kandavelu s |   Link |  Bookmark |May 3, 2012 6:27:45 PM
Real Price band should not be more than 55 to 60. Avoid it.