Motherson Sumi Systems on Thursday (16 April) announced that its board has approved issuing listed, secured, redeemable, non-convertible debentures, worth up to Rs 500 crore, on a private placement basis, in one or more tranches.
Motherson Sumi Systems (MSSL) on 13 April 2020 announced that its board approved to raise up to Rs 1,000 crore to secure liquidity while dealing with the global coronavirus pandemic. The board delegated its committee of directors to evaluate and decide on various borrowing proposals. The firm is also proactively working to leverage on various government support schemes to enhance liquidity.
The company also reported that its 31 March 2020 net debt levels has been the lowest in eleven quarters. The company's consolidated net debt level as on 31 March 2020 stood at Rs 7,150 crore. It included Samvardhana Motherson Automotive Systems Group B.V. or SMRP's, in which MSSL holds 51% stake, net debt of 702 million euros.
MSSL said that its consolidated cash as on 31 March 2020 stood at Rs 4,690 crore, out of which SMRP reported cash reserves of euros 412 million for the period.
"We have adequate headroom in our bond documents to utilize the above and there are also no major maturities of debt in the next 12 months," the company said in a statement.
Also Read
MSSL gained 4.21% to Rs 74.20 on BSE. Shares of Motherson Sumi were up 53% from its 52-week low of Rs 48.50 hit on 24 March 2020.
MSSL's consolidate net profit slumped 30.47% to Rs 270.51 crore on a 4.91% fall in net sales to Rs 15,436.46 crore in Q3 December 2019 over Q3 December 2018.
MSSL is one of the world's leading specialized automotive component manufacturing companies for OEMs.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
