Motherson Sumi, a leading automotive component maker, on Tuesday announced that its board had approved raising funds in the range of Rs 1,500 cr to Rs 3,000 cr through the issuance of non-convertible debentures (NCDs) on private placement basis.
The move comes at a time when the company is trying to stay afloat amid the Covid-19-led disruptions faced by the auto component sector.
The tenure of the instrument is set for three years from the deemed date of the allotment.
"The Committee of Directors 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 Rs 1500 crore which may be increased upto Rs 3000 crore in the event option to retain oversubscription by way of greenshoe option is exercised, on a private placement basis, in one or more tranches to certain eligible investors permitted to invest in the NCDs", the statement said.
In April, the company's board had decided to raise Rs 1,000 crore to secure liquidity while dealing with the global coronavirus pandemic.
Motherson Sumi Systems (MSSL) reported a consolidated net loss of Rs 1,191.65 crore in Q1FY20 as compared with a net profit of Rs 360.64 crore in Q1FY19. Net sales slumped 49.5% to Rs 8,431.23 crore in Q1FY20 over Q1FY19.