Overwhelming demand for NCDs, upsized the issue to Rs. 2,130 crores, says Motherson Sumi Systems Ltd

Motherson Sumi Systems Ltd today announced the successful pricing of its maiden unsecured 3 yearNCD 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, Mr. 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".

Shares of MOTHERSON SUMI SYSTEMS LTD. was last trading in BSE at Rs.111.5 as compared to the previous close of Rs. 109.85. The total number of shares traded during the day was 403737 in over 3715 trades.

The stock hit an intraday high of Rs. 112.7 and intraday low of 110. The net turnover during the day was Rs. 44981750.

Source : Equity Bulls

Keywords