Business News | Motherson Sumi Upsizes NCD Issue to Rs 2,130 Cr Due to Huge Demand
Get latest articles and stories on Business at LatestLY. Specialised automotive component manufacturing company Motherson Sumi Systems has announced the successful pricing of its maiden unsecured three-year non-convertible debenture (NCD) issue.
Noida (Uttar Pradesh) [India], September 11 (ANI): Specialised automotive component manufacturing company Motherson Sumi Systems has announced the successful pricing of its maiden unsecured three-year non-convertible debenture (NCD) issue.
The original issue size was Rs 1,500 crore which was upsized to Rs 2,130 crore by using the greenshoe option due to overwhelming investor demand.
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Overall 24 investors including 23 qualified institutional buyers invested in the NCDs. This was the joint widest distributed debt issuance by an Indian private sector corporate in the current fiscal.
The coupon size is 6.65 per cent and the NCD issue was assigned a rating of AAA (negative) by India Ratings.
Motherson Sumi said the proceeds from NCDs will be used to pre-pay the debt which will help strengthen the balance sheet and reduce interest cost. This transaction further diversifies funding sources for the company by providing access to the deep domestic mutual funds and financial institutions market.
"We are delighted and thankful to the investors for their continued support in Motherson growth story. The strong response to the NCD issue showcases the trust of investors in the abilities and growth prospects of the company," said Director Laksh Vaaman Sehgal.
Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers. It was established in 1986 as a joint venture with Sumitomo Wiring Systems.
With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)