In-principle approval by the Board for issuance of Fund Raising (NCDs).
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The Board of Directors of Samvardhana Motherson International Limited has granted in-principle approval to raise up to ₹5,000 crores through the issuance of Non-Convertible Debentures (NCDs). The NCDs will have a face value of ₹1 lakh each, with a total of 5 lakh debentures to be issued. The issuance will be through private placement to eligible investors and the NCDs will be listed on BSE and/or NSE. The terms such as coupon rate, interest payment schedule, and maturity date are yet to be decided by the delegated committee. These are unsecured, redeemable NCDs.
This ₹5,000 crore debt raise provides the company with capital for potential growth or refinancing needs, though it will increase the company's debt obligations. The impact on shareholders depends on the effective cost of debt and how the funds are utilized.