Motherson Sumi Systems to raise $300 million to repay debt, shares down 1%

Motherson Sumi Systems, a Delhi-based auto component maker, will be raising $300 million through its subsidiary to repay loans and for general corporate purposes.

"Our subsidiary, Samvardhana Motherson Automotive Systems Group B.V. (the Company) has announced the pricing of its U.S.$ 300 million 5.5-year non-call 3 year senior secured Notes offering at 4.875% per annum, due December 2021 (the 2016 Notes)," the company said in a regulatory filing to the Bombay Stock Exchange on Thursday.

"This is the third successful issue of Notes by the Company and marks its successful debut in the U.S. dollar bond markets," it added.

Samvardhana Motherson International Limited (SMIL) is the principal holding company of the Samvardhana Motherson Group.

Motherson Sumi Systems also said that it has applied to the Irish Stock Exchange to list the debt instrument. The offer will close on June 16.

The debt issue, proceeds of which will be used for repaying existing debt, capital expenditure and for general corporate purposes, will be managed and coordinated by ANZ, DBS Bank Ltd., Deutsche Bank and HSBC, Standard Chartered Bank, the company said in its regulatory filing.

For the financial year ended March 2016, Motherson Sumi Systems reported a consolidated net profit of Rs. 1,274 crore on consolidated sales of Rs. 10,068 crore, marking a growth of 48 percent and 8 percent, respectively, on a year-on-year basis.

The Motherson Sumi stock was trading at Rs. 287.50 on the BSE at around 1 p.m., down 0.84 percent from its previous close. 

The company had given a guidance of reaching $18 billion in total revenues by FY2020, according to CNBC-TV18. The Group's turnover was about $6.9 billion in 2014-15.

The Samvardhana Motherson Group has 180 manufacturing facilities and 24 design centres worldwide.