Specialised automotive component manufacturing company Motherson Sumi Systems has announced the successful pricing of its maiden unsecured 3 year NCD (non-convertible debenture) issue.
The OG issue size was ₹1,500 crore which was upsized to ₹2,130 crore by using the greenshoe option due to overwhelming investor demand.
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.
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.
Director Laksh Vaaman Sehgal said, “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.”
