Motherson Sumi upsizes NCD issue to ₹2,130 cr due to huge demand

The original issue size was Rs. 1,500 crore, which was upsized to ₹2,130 crore (using greenshoe option) owing to overwhelming investor demand. Overall 24 investors, including 23 23 qualified institutional buyers (QIBs), have invested in the NCDs.

The coupon size is 6.65 per cent and the NCD issue was assigned a rating of AAA (negative) by India Ratings.

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.

"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," said Director Laksh Vaaman Sehgal.

Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers. It was established in 1986 as a joint venture with Sumitomo Wiring Systems.

With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents.