Auto components major Motherson Sumi Systems Ltd on Monday said its board has approved raising of up to Rs 1,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis.
The company’s board of directors in its meeting held on Monday approved the issuance of rated, listed, unsecured, redeemable NCDs of a face value of Rs 10 lakh each, Motherson Sumi Systems Ltd said in a regulatory filing. These will be issued on a private placement basis, in one or more series/tranches to certain eligible investors and are proposed to be listed on the BSE, it said.
The company further said the tenure of the NCDs and the dates of allotment and maturity, interest offered, and schedule of repayment will be decided by a committee of directors or the delegated authorised persons. It also did not elaborate on where the fund to be raised is proposed to be utilised. Recently, the company has been active with acquisitions. Last month, it had acquired a majority stake in Bengaluru-based CIM Tools Pvt Ltd, one of the leading suppliers in the aerospace supply chain at an enterprise value of Rs 400.5 crore.
Similarly, group firm Samvardhana Motherson Reflectec (SMR) had also acquired a majority stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co Ltd, which is engaged in the manufacturing of automotive mirrors for passenger vehicles, pick-up trucks, and light and heavy commercial vehicles in China.