Motherson Sumi to issue NCDs worth ₹3000 crore to tide over covid crisis

The tenure of the NCDs will be three years with a fixed coupon rate. Rating agency India Ratings and Research has assigned 'AAA/Negative' to the debt instruments.

“The Committee of Directors (Fund Raising) of the Board of Directors of the company in its meeting held today September 8, 2020, has approved the issuance of Rated, Un-Secured, Listed, Redeemable Non-Convertible Debentures (NCDs), with an aggregate amount up to ₹1500 crore which may be increased up to ₹3000 crore," the company said in a regulatory filing.

In April, the VC Sehgal-led company had decided to raise ₹1000 crore following liquidity issues as manufacturing operations were shut due to lockdowns across the globe.

Motherson Sumi reported a consolidated net loss ₹1191.65 crore in the June quarter due to the shutdown of its factories in India and other markets due to the outbreak of the Covid-19 pandemic. The losses incurred during the period were limited by the significant reduction in taxes paid during the quarter.

The Noida-based component manufacturer reported a net profit ₹360.64 crore in the corresponding period of last year.

The revenue during the quarter declined by 49.48% year-on-year to ₹8431.23 crore. It reported earnings before interest, tax, depreciation and amortization or Ebitda loss of ₹319.8 crore compared to a profit of ₹1275.74 crore in corresponding quarter last fiscal.