Overwhelming Demand For NCDs, Upsized The Issue To Rs. 2,130 Crores, Says Motherson Sumi Systems Ltd

Motherson Sumi Systems Ltd has announced the successful pricing of its maiden unsecured 3 year-NCD issue. The original issue size was Rs. 1,500 crores which was upsized to Rs. 2,130 crores (using greenshoe option) on the back of overwhelming investor demand. Overall 24 investors (including 23 QIBs) have 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% and the NCD issue was assigned a rating of AAA (negative) by India Ratings. The proceeds from this NCD 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 Motherson by providing access to the deep domestic Mutual Funds and Financial Institutions market.  

Commenting on the same, Laksh Vaaman Sehgal, Director, Motherson Sumi Systems Ltd 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”