Shares in Motherson Sumi rose 3 per cent after its board decided to seek shareholders' approval to raise over Rs 3,500 crore with an objective to enhance long term resources to support the growth potential.
"The board decided with an objective 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 the BSE filing.
The company will also seek a resolution for preferential allotment of upto 17.80 million equity shares or Issue of FCCB of an amount upto Rs 5625 million to Sumitomo Wiring Systems (SWS), Japan and to raise an amount of Rs 3,000 crore via qualified institutional placement.
This is a step towards gearing up for growth in line with the Vision 2020 announced by the company. MSSL has set a target of becoming a USD18 Billion company by 2020, the release added.
Shares of the Motherson Sumi rose 3.95 per cent on BSE at 1.20 pm IST. It touched an intra-day high of Rs 347 during trade.