Indian auto components maker withdraws IPO

Indian auto components manufacturer Samvardhana Motherson Finance SMFL late Friday called off its initial public offering after poor sentiment towards India made investors stay away from the deal.

Excluding the anchor tranche, the deal was only 0.23 times covered when the bookbuilding closed on Friday, which prompted the company, the selling shareholders and the bookrunners to decide “not to proceed with the issue, SMFL said in a brief statement. The company was seeking to raise Rs16.65 billion $313 million and had secured Rs2.22 billion, or about 13.3% of the total deal size, from anchor investors before the order books opened on Wednesday, but sources said a deterioration in market...