Motherson Sumi upsizes NCD issue to Rs 2,130 crore using greenshoe option

Auto component major Motherson Sumi Systems Ltd (MSSL) on Thursday said it has upsized its maiden unsecured three-year NCD issue to Rs 2,130 crore.

The original issue size was Rs 1,500 crore, which was upsized using the greenshoe option on the back of overwhelming investor demand, MSSL said in a statement.

Overall, 24 investors (including 23 qualified institutional buyers) have invested in the non-convertible debentures (NCDs), it added.

The issue was the joint widest distributed debt issuance by an Indian private sector corporate in the current fiscal, the company claimed.

The proceeds from the issue will be used to pre-pay debt, which will help strengthen the balance sheet and reduce interest cost, MSSL said.

"The strong response to the NCD issue showcases the trust of investors in the abilities and growth prospects of the company," MSSL Director Vaaman Sehgal said.

Also read: Motherson Sumi Q1 results: Loss stands at Rs 810 crore, revenue dips 49%

Also read: Motherson Sumi to raise Rs 3,000 crore via NCDs to mitigate COVID crisis