MOTHERSON

** Brokerage CLSA raises target price on auto parts maker Samvardhana Motherson SAMD.NS to 124 rupees from 113 rupees; lifts target multiple to 24x from 23x

** Stock rises 2.4% to 107.2 rupees

** New TP implies an 18% upside on last close; CLSA rates SAMD "outperform"

** CLSA says the company has been able to execute a more-than 2x jump in profit in 5 years; looks to set steeper targets for the next five years, citing a meeting with the company's management

** SAMD is aiming for 5x revenue in next 5-yrs; maintains long-term return on capital employed target at 40% - CLSA

** SAMD set for seventh straight session of gains; it rose 10.7% last week

** Stock rated "Buy" on avg, median PT at 114 rupees - data compiled by LSEG

** YTD, stock up 3%

(Reporting by Manvi Pant in Bengaluru)

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** Shares of Samvardhana Motherson International Ltd SAMD.NS climb ~4% to 104.52 rupees; extending weekly gains to 10.4%

** Auto parts maker set for biggest weekly gain since June 2024

** SAMD rose in all sessions of the week, with gains led by its bullish growth outlook, and hopes of a U.S. trade deal

** Analysts tracking stock rate it "buy" on average - data compiled by LSEG

** Stock biggest daily and weekly gainer among auto stocks .NIFTYAUTO and on Nifty Next 50 .NN50 index

** SAMD turns YTD positive, last up 0.4% vs Nifty Auto index's ~18% jump

(Reporting by Nandan Mandayam in Bengaluru)

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Aug 29 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON- SAMIL BOARD APPROVES SHARE CAPITAL REDUCTION BY MTSL

• SAMVARDHANA MOTHERSON - SAMIL TO OWN 100% OF MTSL POST SHARE CAPITAL REDUCTION

Source text: ID:nNSE957h6X

Further company coverage: SAMD.NS

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** Shares of auto parts maker Samvardhana Motherson SAMD.NS gain 4.2% to 94.01 rupees

** Co missed quarterly profit estimates, hurt by tepid global demand for cars

** SAMD is well-positioned to navigate evolving tariffs as majority of the sales in the U.S. are United States-Mexico-Canada (USMCA) compliant, Chairman Vivek Chaand says

** Adds, for non-USMCA compliant parts, agreements with customers to pass on related costs are in progress

** SAMD's shares fell 1.3% on August 7 after the U.S. announced additional 25% tariff on Indian goods over its Russian oil purchases, taking total tariffs to 50%

** SAMD is the top percentage gainer on Nifty auto index .NIFTYAUTO, which is up 1.3%

** Year-to-date, stock is down ~10% vs ~6% rise in Nifty auto

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Aug 8 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - INCORPORATED SUBSIDIARY MOTHERSON NEW ENERGY

Source text: ID:nBSE31QGSl

Further company coverage: SAMD.NS

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MUMBAI, June 25 (Reuters) - India's Samvardhana Motherson International SAMD.NS has accepted bids worth 20.25 billion Indian rupees ($235.34 million) for bonds maturing in five years, three merchant bankers said on Wednesday.

It will pay an annual coupon of 6.80% and had invited bids from bankers and investors earlier in the day, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on June 25:

*Size includes base plus greenshoe for some issues

($1 = 86.0450 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Tasim Zahid)

(([email protected]))

MUMBAI, June 24 (Reuters) - India's Samvardhana Motherson International SAMD.NS plans to raise 25 billion rupees ($290.1 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in five years, three merchant bankers said on Tuesday.

It will pay an annual coupon of 6.80% and has invited bids from bankers and investors on Wednesday, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on June 24:

*Size includes base plus greenshoe for some issues

($1 = 86.1900 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Una Galani

HONG KONG, June 12 (Reuters Breakingviews) - Japan has become the world's hottest private equity market. So it is perhaps fitting that one of the country’s biggest buyout wreckages is finally being cleared up. Marelli, a supplier of parts to automakers Nissan Motor 7201.T and Stellantis STLAM.MI, on Wednesday voluntarily filed for bankruptcy protection in the United States to restructure debt of around 700 billion yen, about $4.9 billion. It's a painful ending for owner KKR KKR.N but one that will help the private equity giant steer around the pileup.

Marelli's decision to initiate Chapter 11 proceedings in the United States for the maker of lighting, interiors and chassis solutions is the latest twist in the long-running saga. A consortium of overseas creditors led by Strategic Value Partners, Deutsche Bank DBKGn.DE and South Korea's MBK will provide $1.1 billion of debtor-in-possession financing and take ownership if no superior offer emerges within a 45-day period, two people familiar with the situation told Reuters Breakingviews.

That’s not a foregone conclusion. Samvardhana Motherson International SAMD.NS, the Indian supplier of car wiring, mirrors and other parts, may yet submit an offer if it can gather financing. The $13 billion group’s earlier buyout proposal won the backing of Marelli customers and Japanese lenders led by Mizuho Financial Group 8411.T, but failed to secure the support of international creditors.

Finding a strong strategic owner for Marelli would be some consolation for Japan, whose auto industry is both an export engine and key employer. KKR will suffer a $2.6 billion writedown, most of which it has incurred already. Yet a successful restructuring would limit its embarrassment in the country that is the anchor for the buyout firm’s Asia Pacific strategy, representing 36% of the fair value of its investments in the region. Despite the Marelli crash, the firm has generated an impressive 37% gross internal rate of return across 15 investments since 2010.

The buyout came straight from a private equity owner’s manual: borrow large sums to pluck unloved divisions out of companies, mash them together, hack out costs, improve efficiency and find more customers. KKR kicked off by acquiring Japan’s Nissan-backed Calsonic Kansei for up to $4.5 billion in 2016, and then in 2019 paid about $6.5 billion to extract Italy’s Magneti Marelli from what was then Fiat Chrysler Automotive.

Challenges came thick and fast, however. Travel restrictions during the pandemic meant the Italian and Japanese engineers were unable to work side by side, while the arrest of Carlos Ghosn, the ousted chair of Nissan, precipitated turmoil at Marelli’s top customer. Now the entire auto industry is straining to adjust to the rise of electric vehicles, drowning in overcapacity, and reeling from U.S. President Donald Trump’s tariffs.

Marelli had already rejigged its debt, back in 2022. Its problems now look slightly less specific to KKR's ownership. The final chapter of this disastrous deal will nonetheless serve as a reminder to the rest Japan Inc. of what can go wrong in its current buyout boom.

Follow Una Galani on Linkedin and X.

CONTEXT NEWS

Japanese auto-parts supplier Marelli has initiated voluntary U.S. Chapter 11 proceedings to restructure its long-term debt, the company owned by U.S. private equity firm KKR said on June 11.

Approximately 80% of lenders have signed an agreement to support a restructuring that will provide $1.1 billion of debtor-in-possession financing from lenders, Marelli said. Lenders providing the DIP financing will take ownership of the business when it emerges from Chapter 11 if no superior proposal emerges during a 45-day "overbid" process, it added.

In May, Marelli put forward a restructuring plan focused on a buyout by India's Samvardhana Motherson International but the proposal divided Japanese and foreign creditors, the Nikkei reported, citing unnamed sources.

Japanese lenders to Marelli include Mizuho, Japan Bank for International Cooperation and Development Bank of Japan. Strategic Value Partners, a credit investor, is the largest of the foreign creditors.

(Editing by Peter Thal Larsen; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on GALANI/ [email protected]))

Adds details, background from paragraph 4

April 15 (Reuters) - India's auto shares jumped more than 3% on Tuesday and were set for their best day since early January, after U.S. President Donald Trump suggested he might grant exemptions on auto-related import tariffs.

Speaking on Monday at the White House, Trump said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. Those tariffs could raise the costs of a car by thousands of dollars, and Trump said car companies "need a little bit of time because they're going to make 'em here."

Shares of auto parts makers rose the most on the auto index .NIFTYAUTO, which was last up 3.3%.

Samvardhana Motherson SAMD.NS, India's biggest component maker by market capitalisation, jumped 7.7%, while Bharat Forge BFRG.NS and Sona BLW SONB.NS rose around 6% and 7.3%, respectively.

Tata Motors, whose luxury unit Jaguar Land Rover (JLR) gets about a quarter of its sales from the U.S., rose 5%. It was the second-biggest winner on the auto index and among the biggest winners on the blue-chip Nifty 50 .NSEI, which was up over 2%.

The 15-member auto index, which had fallen nearly 11% since Trump announced his auto tariffs on March 26, has since narrowed the decline to 2.5%.

U.S.-reliant auto stocks pared their losses to between 6% and 12%, with Samvardhana posting the smallest loss and Tata Motors recording the steepest drop.

Trump's latest comments came days after he said he would pause "reciprocal" tariffs imposed on dozens of countries for 90 days.

Nomura said in a note on Friday they expect Indian suppliers to benefit from the pause on tariffs, as U.S. automakers look to source parts outside of China amid tit-for-tat tariffs between Washington and Beijing.

Ten of the 15 Nifty auto stocks are rated "buy" on average, with the rest rated "hold", according to data compiled by LSEG.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala and Varun H K)

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April 8 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SUBSIDIARY INCORPORATES SAMVARDHANA MOTHERSON GLOBAL OPERATION FZCO

Source text: ID:nnAPN2QC851

Further company coverage: SAMD.NS

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Rewrites throughout to include Indian auto parts makers, global peers' share moves

March 27 (Reuters) - India's Tata Motors TAMO.NS and the country's auto parts makers that supply Tesla TSLA.O, among others, dropped on Thursday after U.S. President Donald Trump announced plans for 25% tariffs on all imported cars and auto parts.

Tata Motors slid 5%, while Tesla's biggest Indian supplier, Sona Comstar SONB.NS, dropped over 4%, leading to a 1.2% drop in the auto sector .NIFTYAUTO in the world's third-largest auto market.

The 25% tariffs on cars and light trucks imported into the U.S. will start on April 2, while tariffs on auto parts will take effect from May 3. The news rocked the auto sector globally, with Tesla CEO Elon Musk saying the impact on the EV maker is "significant."

The U.S. is a top destination for Tata Motors-owned Jaguar Land Rover's (JLR) luxury cars, which are imported from plants in the UK and Slovakia.

Among other stocks, Samvardhana Motherson SAMD.NS, India's biggest auto parts supplier, fell over 2%, while Bharat Forge BFRG.NS, which also supplies Tesla, was down 0.4%.

The U.S., Samvardhana's top market along with India, accounts for 20% of its total revenue. North America, led by the U.S., forms a steeper 40% of Sona Comstar's revenue.

The day's decline also mirrors share moves of larger global carmakers, from Toyota 7203.T and Hyundai 005380.KS, to Stellantis STLAM.MI and Ford F.N, all of which fell after Trump's announcement.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)

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March 21 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL - TO SUBSCRIBE OF 20,000 CCDS AGGREGATING UP TO 2 BILLION RUPEES

Source text: ID:nNSE28GRGX

Further company coverage: SAMD.NS

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March 4 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SELECTED AS TIER 1 SUPPLIER TO AIRBUS COMMERCIAL AIRCRAFT

• SIGNS MULTI-YEAR CONTRACT TO SUPPLY AIRBUS

Source text: ID:nBSE8kCNy7

Further company coverage: SAMD.NS

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Feb 20 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL LTD - INCORPORATES WHOLLY OWNED SUBSIDIARY IN UAE

• SAMVARDHANA MOTHERSON INTERNATIONAL - UNIT TO PROVIDE TREASURY SERVICES FOR SAMIL AND SUBSIDIARIES

Source text: ID:nBSE8LPvgd

Further company coverage: SAMD.NS

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** Shares of auto-parts maker Samvardhana Motherson SAMD.NS slip ~2% to 123.81 rupees

** At least 11 brokerages cut price targets on stock after Q3 results missed estimates on Friday, hurt by weak global car sales, per data compiled by LSEG

** Brokerages including J.P. Morgan, Nomura, Citi Research said global auto demand remains weak in near-term on production delays, uncertainty around U.S. tariffs

** Investec says co is not "out of the woods yet" as macroeconomic demand challenges continue

** Some analysts flag positive growth momentum in co's emerging businesses segment, which includes electronics and aerospace segments and on management strategy to focus on acquisitions

** Mean PT of 19 brokerages falls to 162.43 rupees from 179.26 rupees before results - data compiled by LSEG

** Stock down ~21% YTD, it rose 53% in 2024

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Feb 14 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL Q3 CONSOL NET PROFIT 8.79 BILLION RUPEES; IBES EST. 9.4 BILLION RUPEES

• SAMVARDHANA MOTHERSON INTERNATIONAL Q3 CONSOL TOTAL REVENUE FROM OPERATIONS 276.66 BILLION RUPEES; IBES EST. 293.11 BILLION RUPEES

Source text: [ID:]

Further company coverage: SAMD.NS

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Feb 7 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMIL APPROVES COMPOSITE SCHEME OF ARRANGEMENT WITH SUBSIDIARIES

• SCHEME INCLUDES DEMERGER AND AMALGAMATION OF SUBSIDIARIES

Source text: ID:nNSEMTdW1

Further company coverage: SAMD.NS

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Jan 9 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - DEVELOPMENT OF GEN 3 PROTOTYPE EXPECTED TO TAKE SOME MORE TIME

• SAMVARDHANA MOTHERSON - PUBLIC AUCTION FOR PRYSM'S ASSETS BEING INITIATED

• SAMVARDHANA MOTHERSON - MSSL CONSOL AGREED TO PROVIDE DRIP FINANCING OF UP TO $3.8 MILLION

Source text: ID:nBSE9gQBNd

Further company coverage: SAMD.NS

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Dec 6 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - APPROVED ACQUISITION OF 95% STAKE IN ATSUMITEC CO LTD

• SAMVARDHANA MOTHERSON - DEAL FOR $57 MILLION

Source text: ID:nNSE5Cv29Z

Further company coverage: SAMD.NS

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Nov 12 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL Q2 CONSOL NET PROFIT 8.80 BILLION RUPEES; IBES EST. 9.15 BILLION RUPEES

• SAMVARDHANA MOTHERSON INTERNATIONAL Q2 CONSOL TOTAL REVENUE FROM OPERATIONS 278.12 BILLION RUPEES; IBES EST. 281.88 BILLION RUPEES

Source text: ID:nBSE449JNg

Further company coverage: SAMD.NS

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Sept 26 (Reuters) - Samvardhana Motherson International Limited

• SAMVARDHANA MOTHERSON INTERNATIONAL LIMITED REPORTS 19.6%% STAKE IN REE AUTOMOTIVE LTD. AS OF SEPTEMBER 26 - SEC FILING

• SAMVARDHANA MOTHERSON INTERNATIONAL - IN DISCUSSIONS WITH REE AUTOMOTIVE REGARDING DESIGNATION OF INDIVIDUAL FOR APPOINTMENT TO THE BOARD

Source text for Eikon: [ID:n0001123292-24-000291]

Further company coverage: REE.O

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Sept 23 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• CLOSES QIP, RAISED $771 MILLION

Source text for Eikon: ID:nBSE1bnWV7

Further company coverage: SAMD.NS

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Adds share movement in paragraph 2

Sept 16 (Reuters) - REE Automotive REE.O has raised over $45 million in a fresh funding round led by M&G Investment and signed a supply chain partnership with Indian auto parts maker Samvardhana Motherson SAMD.NS, the electric truck maker said on Monday.

Shares of the Israel-based company jumped more than 12% in premarket trading.

REE is looking to streamline its supply chains and bring down the high costs involved in manufacturing costly electric vehicles, as EV startups weather an uncertain economy and sluggish demand.

The company has signed direct share purchase agreements under which multiple investors, including M&G Investments, Motherson, and Varana Capital, will buy more than 11 million REE shares at $4.122 per share.

The $15 billion-worth Motherson, one of India's largest auto parts makers, supplies parts to domestic and global automakers such as Maruti Suzuki MRTI.NS and Mercedes-Benz MBGn.DE.

As part of the supply chain partnership, Motherson will manage sourcing and supply chain logistics for all vehicle parts, and support the assembly of the REECorner and REE P7 electric truck models.

It will also nominate a director to join REE’s board of directors.

Following the offering's close on Sept. 19, M&G will hold around 16% of REE's outstanding shares, Motherson will hold around 19% on a non-diluted basis and Varana Capital will hold 8%.

With the Motherson collaboration, REE expects to boost production to meet growing demand and fulfill fleet orders from multi-national customers, the company said, adding that it will use the funds for general working capital.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Janane Venkatraman)

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By Aditi Shah and Aditya Kalra

NEW DELHI, Sept 4 (Reuters) - One of India's largest makers of auto parts, Samvardhana Motherson International SAMD.NS, will launch a share sale of up to $715 million this month, two sources briefed on the matter told Reuters, the latest company to tap a booming stock market.

The fund-raising exercise stands to be one of India's biggest this year, data from Dealogic shows, lagging only $1-billion share sales by Vedanta and Adani Energy in recent months.

With a market capitalisation of about $15 billion, Motherson supplies parts to domestic and global automakers such as Maruti Suzuki MRTI.NS and Mercedes-Benz MBGn.DE.

Motherson's roadshows for the fund-raising exercise are "finding support from investors," said one of the two sources, who sought anonymity as the planning process is confidential.

The exercise is expected to be completed by month-end, the sources said, adding that the company plans to use the funds raised to repay debt, fund some expansion and certain capital expenditure.

Motherson did not respond to a request for comment.

The funds will be raised through a so-called Qualified Institutional Placement (QIP), which listed Indian companies use to raise funds from large institutions.

Motherson reported revenues of $11.75 billion and operating profit of more than $1 billion in the fiscal year that ended in March. Its net debt at the end of June stood at $1.58 billion.

Axis Bank AXBK.NS, HSBC HSBA.L, Jefferies JEF.N, JM Financial JMSH.NS and Morgan Stanley MS.N are advising the company on the share sale.

Jefferies declined to comment, while the other four did not respond to Reuters' requests for comment.

Motherson says it is among the world's largest suppliers of auto parts and also counts Tata Motors TAMO.NS, Volkswagen VOWG_p.DE, Ford Motor F.N and Porsche PSHG_p.DE among its clients.

Listed on the stock exchanges in 1993, the company also supplies parts to the aerospace, consumer goods and health and medical industries. It has acquired 45 companies in India and globally over the past two decades.

India's stock market is on a hot streak, with the benchmark index .NSEI up 16% this year, outdoing Asian peers.

(Reporting by Aditi Shah and Aditya Kalra; Editing by Clarence Fernandez)

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Aug 21 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - INCORPORATED UNIT MOTHERSON STRATEGIC SYSTEMS MIDEAST, DUBAI

• SAMVARDHANA MOTHERSON - COST OF ACQUISITION AT AED 100,000

Source text for Eikon: ID:nBSE1tJwPd

Further company coverage: SAMD.NS

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** Shares of Samvardhana Motherson SAMD.NS rise about 3% to 185.85 rupees apiece

** Autoparts maker beats profit estimates in June quarter

** JPMorgan raises target price to 195 rupees from 165 rupees, reiterating "overweight" after the results

** Adds, SAMD to witness robust revenue growth between fiscal years 2024 and 2027 driven by rising vehicle assets and investments in non-automotive segments like aerospace and consumer electronics

** Morgan Stanley also raises target price to 198 rupees from 176 rupees, citing likely improvement in balance sheet, while Nomura expects diversification to defence and aerospace segments to aid growth

** The mean rating of 19 analysts tracking SAMD is "buy"; median target price 195 rupees - LSEG data

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Aug 13 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL Q1 CONSOL NET PROFIT 9.94 BILLION RUPEES; IBES PROFIT EST. 9.51 BILLION RUPEES

• SAMVARDHANA MOTHERSON Q1 CONSOL TOTAL REVENUE FROM OPERATIONS 288.68 BILLION RUPEES; IBES EST. 283.74 BILLION RUPEES

Source text for Eikon: ID:nBSE7mGxZw

Further company coverage: SAMD.NS

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July 30 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - TO CONSIDER RAISING OF FUNDS

Source text for Eikon: ID:nBSE38yPyc

Further company coverage: SAMD.NS

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July 29 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SALE OF UNIT'S STAKE IN LAUAK CIM AEROSPACE TO BE COMPLETED IN AUGUST 2024

Source text for Eikon: ID:nNSE3cVmqX

Further company coverage: SAMD.NS

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