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

Noida, Thursday, 10th Sep 2020 

The company today 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, 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”

About Motherson Sumi Systems Limited 

Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems and was listed in 1993 on BSE and NSE in India. MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group, ranked 22nd among global automotive suppliers by Automotive News.