MOTHERSON

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)

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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.

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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]))

April 15 (Reuters) - India's auto shares jumped 3% on Tuesday, led by gains in auto parts makers after U.S. President Donald Trump suggested he might grant exemptions on auto-related import tariffs.

Shares of India's biggest component maker by market capitalisation, Samvardhana Motherson SAMD.NS, jumped 7%, while other U.S.-reliant parts makers Bharat Forge BFRG.NS and Sona BLW SONB.NS rose over 6% each.

Tata Motors, whose luxury unit Jaguar Land Rover (JLR), gets about a quarter of its sales from the U.S., rose 5% on the day.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)

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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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March 27 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON INTERNATIONAL LTD - COMPANY ASSESSES NO MATERIAL IMPACT FROM U.S. TARIFFS

• SAMVARDHANA MOTHERSON- SIGNIFICANT PART OF PRODUCTS SUPPLIED BY CO TO US ARE USMCA COMPLIANT

Source text: ID:nBSE2bbFst

Further company coverage: SAMD.NS

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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)

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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:

• UNITS APPROVED TO EXECUTE JV AGREEMENT(S) WITH SANKO CO

• JOINT VENTURE TO PROVIDE SUSTAINABLE PACKAGING SOLUTIONS IN INDIA AND EUROPE

• JV-A TO BE INCORPORATED IN INDIA WITH SMGCL 51%, SANKO 49%

• JV-B TO BE INCORPORATED IN HUNGARY WITH SAHN BV 51%, SANKO 49%

Source text: ID:nBSEbb9Ksz

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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Sept 16 (Reuters) - Samvardhana Motherson International Ltd SAMD.NS:

• SAMVARDHANA MOTHERSON - SMRC AUTOMOTIVE HOLDINGS NETHERLANDS TO EXECUTE JV AGREEMENT WITH HAMAKYOREX

• SAMVARDHANA MOTHERSON - JV BEING SETUP TO CONDUCT LOGISTICS OPERATIONS

• SAMVARDHANA MOTHERSON - INITIAL ISSUED AND PAID-UP EQUITY SHARE CAPITAL OF JVC SHALL BE JPY 50 MILLION

Source text for Eikon: ID:nBSE71WLNl

Further company coverage: SAMD.NS

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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)

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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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MUMBAI, July 4 (Reuters) - A unit of Indian auto parts maker Samvardhana Motherson International SAMD.NS has accepted bids worth $350 million for the sale of its dollar-denominated bonds maturing in five years, the company said in a filing with stock exchanges late Wednesday.

SMRC Automotive Holdings Netherlands BV will pay a coupon of 5.6250% on this issue, which is 140 basis points over the five-year U.S. yields, comfortably below the initial price guidance of a spread of 175 bps.

The proceeds from the issue would be used for debt repayment and refinancing.

BNP Paribas, Citigroup, HSBC, J.P. Morgan and MUFG are the joint global coordinators and joint lead managers while DBS Bank and Standard Chartered Bank are the joint lead managers for the issue.

Samvardhana Motherson International is the guarantor for the proposed notes, which are rated Baa3 by Moody's and BBB- by Fitch Ratings.

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

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MUMBAI, July 3 (Reuters) - A unit of Indian auto parts maker Samvardhana Motherson International SAMD.NS is planning to raise funds through the sale of five-year dollar-denominated bonds and has provided an initial price guidance, two bankers said on Wednesday.

SMRC Automotive Holdings Netherlands B.V. has given the initial price guidance of a spread of 175 basis points over the five-year U.S. Treasury yield, they said.

The five-year U.S. bond yield was around 4.40%.

The unit plans to raise $500 million through the sale of dollar bonds and had mandated bankers for the issue in June.

The coupon on the notes would be finalised later this week.

BNP Paribas, Citigroup, HSBC, J.P. Morgan and MUFG are the joint global coordinators and joint lead managers while DBS Bank and Standard Chartered Bank are the joint lead managers for the issue.

Samvardhana Motherson International is the guarantor for the proposed notes, which are expected to be rated Baa3 by Moody's and BBB- by Fitch.

(Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala)

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** Shares of auto parts maker Samvardhana Motherson up 3.5%, taking two day-rally to 7% and YTD gains to 100%

** Stock SAMD.NS hits record high of 207.12 rupees, above the most bullish analyst's price target

** 17 of 18 analysts have PTs between 130 rupees and 200 rupees, rate SAMD the equivalent of "strong buy" or "buy" - LSEG data

** Citi, though, rates it "sell" with PT of 85 rupees, per media reports

** SAMD surged nearly 26% in June, its best month since Feb. 2021, helped in part by strong Q4 results at end May

** Still, SAMD's fwd-12 month PE is 29.5, less than the 44-79x for the other for auto parts firms on the Nifty auto index

** The Nifty auto index .NIFTYAUTO has gained ~36 YTD

** Mahindra and Mahindra's MAHM.NS 66.5% jump the next best to SAMD on index

(Reporting by Savio Dsouza)

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MUMBAI, June 26 (Reuters) - A unit of Indian auto parts maker Samvardhana Motherson International SAMD.NS is planning to raise up to $500 million through the sale of five-year dollar bonds and has mandated bankers for the issue, two bankers said on Wednesday.

SMRC Automotive Holdings Netherlands B.V. has mandated BNP Paribas, Citigroup, HSBC, J.P. Morgan and MUFG as joint global coordinators and joint lead managers and DBS Bank and Standard Chartered Bank as joint lead managers.

The mandated bankers will organise a series of fixed income investor meetings and calls across Asia, Europe, the Middle East, Africa and the U.S. from Wednesday.

The dollar bond issue is expected to be priced next week, the bankers said, requesting anonymity as they are not authorised to talk to the media.

Samvardhana Motherson International will provide the guarantee on behalf of the issuer for proposed notes, it informed Indian exchanges on Wednesday.

The notes are expected to be rated Baa3 by Moody’s and BBB- by Fitch.

(Reporting by Bhakti Tambe; Editing by Janane Venkatraman )

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

• Q4 CONSOL NET PROFIT 13.72 BILLION RUPEES; LSEG IBES PROFIT EST. 7.69 BILLION RUPEES

• Q4 CONSOL TOTAL REVENUE FROM OPERATIONS 270.58 BILLION RUPEES; LSEG IBES EST. 269.21 BILLION RUPEES

• YEAR AGO Q4 CONSOL PROFIT 6.54 BILLION RUPEES, TOTAL REVENUE 225.17 BILLION RUPEES

Source text for Eikon: ID:nBSEbT9t9R

Further company coverage: SAMD.NS

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BENGALURU, May 16 (Reuters) - Motherson Sumi Wiring India MSWI.NS on Thursday reported a 38% rise in fourth-quarter profit, aided by strong demand for automobiles.

The company's profit rose to 1.91 billion rupees ($22.9 million) in the three months ended March 31 from 1.38 billion rupees a year earlier.

Motherson Sumi provides wiring harness solutions to automotive companies, including Maruti Suzuki, Tata Motors and Hyundai.

Demand for cars, especially for sport utility vehicles (SUVs), grew steadily during the quarter, benefiting companies like Motherson Sumi.

Passenger vehicles and electric vehicle models drove demand for wiring harnesses, the company said.

The Noida-based company, which is a joint venture between India's Samvardhana Motherson International SAMD.NS and Japan's Sumitomo Wiring Systems, said total revenue from operations grew 19% to 22.33 billion rupees.

The company's earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded to 13% from 11.8% a year earlier.

Shares of the company rose 3.3% ahead of results, currently trading up 0.7%. It rose 7% in the March quarter.

($1 = 83.4856 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami)

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** Shares of Samvardhana Motherson SAMD.NS rise as much as 3.77% to 132 rupees, highest since January 2022

** About 3.94 mln shares of auto parts maker trade in five blocks at 129 rupees-131.45 rupees apiece

** Deals at 1.42%-3.34% premium to SAMD's last close

** SAMD shares up 29% in 2024 so far, compared with 19% rise in Nifty auto index .NIFTYAUTO of which it is a constituent - LSEG data

(Reporting by Bharath Rajeswaran in Bengaluru)

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