Samvardhana Motherson International Limited has received in-principle approval from its Board of Directors to raise up to ₹5,000 crore through the issuance of rated, listed, unsecured, redeemable Non-Convertible Debentures (NCDs). The funds will be raised on a private placement basis, with each debenture carrying a face value of ₹1,00,000. This strategic financial move allows the company to bolster its capital structure in one or more tranches.
Financial Strategy and Issuance Details
During the board meeting held on May 20, 2026, the directors of Samvardhana Motherson International Limited officially authorized the issuance of 5,00,000 NCDs. The total aggregate principal amount is set at up to ₹5,000 crore. These instruments are designed to be unsecured and redeemable, providing the company with flexible options for long-term capital management.
Terms and Listing Information
The company plans to list these debentures on either the BSE Limited or the National Stock Exchange of India Limited, or potentially both. While the face value of each debenture is fixed at ₹1,00,000, the specific details regarding the tenure, coupon rates, and interest payment schedules have been delegated to an authorized committee of directors, who will finalize the terms based on market conditions and operational requirements.
Commitment to Capital Growth
This issuance marks a significant step in the company’s efforts to optimize its debt profile through private placement. By opting for NCDs, Samvardhana Motherson continues to demonstrate its commitment to maintaining a robust financial foundation to support its ongoing business operations and expansion strategies.
Source: BSE
