Samvardhana Motherson Int to raise ₹2,500 cr via NCD for capex, acquisition

The company has lined up investment of about ₹6,000 crore in FY26 for capital expenditure through 14 greenfield facilities

Samvardhana Motherson International Ltd (SAMIL), an automotive player, is planning to raise up to ₹2,500 crore through non-convertible debentures (NCDs) for financing capital expenditure (capex), acquisition-related requirements and refinance existing debt.

 

The company has lined up investments of about ₹6,000 crore in FY26 as capex through 14 greenfield facilities. It had set aside a capex of ₹4,560 crore in FY25 and ₹4,130 crore in FY24.

 

India Ratings (Ind-Ra) has assigned “AAA” rating to the proposed NCDs and affirmed ratings for debt instruments. 

 

The ratings reflect stable operating performance despite multiple acquisitions, a strong credit profile and robust liquidity, the rating agency said in a statement.

 

Consolidated net adjusted leverage reduced to 0.9x in FY25 from 1.4x in FY24, and 1.5x in FY23.

 

The leverage declined mainly on account of improved operating cash flows, supported by higher earnings before interest, taxes, depreciation and amortisation (Ebitda) levels of ₹10,550 crore in FY25, ₹9,290 crore in FY24 and ₹6,290 crore in FY23.

 

The reduction in leverage was despite completing several acquisitions and heavy capex. 

 

The company had raised ₹6,440 crore in September 2024 via a qualified institutional placement (QIP), whose proceeds were used to pare debt.

 

The rating agency said it expected the net adjusted leverage to remain below 2x in FY26.

 

It would be led by improved Ebitda levels, on account of higher contribution from margin-accretive acquisitions.

 

As of March 2025, consolidated reported gross adjusted debt decreased to ₹15,730 crore from ₹19,920 crore in FY24. 

 

It is investing especially in emerging markets and the non-automotive segment, along with incurring maintenance capex across all geographies.

 

Around nine of the total greenfield projects planned are likely to go on stream during FY26.

 

The company’s revenue expanded at a compound annual growth rate (CAGR) of 19 per cent over FY21-FY25. It was led by organic as well as inorganic growth with the company being a key beneficiary of rising premiumisation trends across segments.

 

The company has a well-diversified business profile with presence across components, geographies and customers, India Ratings said. SAMIL also has an established relationship with various original equipment manufacturers (OEMs), it added.