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Motherson Sumi board approves raising Rs 1,500 cr via NCDs

Capital Market 

The automotive component maker on Tuesday said its board has approved raising up to Rs 1500 crore through issuance of non-convertible debentures (NCDs) on private placement basis.

The board of directors of Motherson Sumi Systems in its meeting held today, 8 September 2020, 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 of oversubscription by way of greenshoe option, on a private placement basis, in one or more tranches to certain eligible investors. The tenure of the instrument is set for three years from the deemed date of the allotment.

Motherson Sumi Systems (MSSL) reported a consolidated net loss of Rs 1,191.65 crore in Q1 June 2020 as compared with net profit of Rs 360.64 crore in Q1 June 2019. Net sales slumped 49.5% to Rs 8,431.23 crore in Q1 June 2020 over Q1 June 2019.

Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers.

Shares of Motherson Sumi Systems rose 0.13% to Rs 114.10. The stock has surged 135.26% from its 52-week low of Rs 48.50 hit on 24 March 2020. It hit a 52-week high of Rs 151 on 9 January 2020.

On the technical front, the stock's RSI (relative strength index) stood at 53.732. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 105.33 and its 200-day moving average (DMA) placed at 106.42.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, September 08 2020. 11:58 IST
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