Motherson Sumi’s arm issues 7-year Euro denominated bonds

Motherson Sumi announced that its subsidiary, Samvardhan Motherson Automotive Systems Group B.V. (SMRP BV) has issued 300 million euro bonds which are due by July 2024, non-call life senior secured notes offering 1.8% on Friday.

This is the fourth successful issue of notes by SMRP BV and third offering in the European markets. This is also the lowest yield long tenor corporate bond to date from an Indian private sector corporate.

The notes have been rated BBB- by Fitch and BB+ by S&P following a publication of the SMRP BV’s credit ratings as BB+ by S&P and Fitch.

The proceeds from the issuance along with 200 million euro of the cash balance of SMRP BV will be used to refinance existing 4.125% EUR 2021 notes. The lower pricing of the notes will effectively result in a significant reduction in interest cost for the company.
Stock view :-

Motherson Sumi Systems Ltd is currently trading at Rs 451.75, down by Rs 5.25 or 1.15% from its previous closing of Rs 457 on the BSE.

The scrip opened at Rs 456 and has touched a high and low of Rs 456 and Rs 446.8 respectively. So far 475598(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 64141.76 crore.

The BSE group 'A' stock of face value Rs 1 has touched a 52 week high of Rs 492.85 on 20-Jun-2017 and a 52 week low of Rs 274.1 on 08-Jul-2016. Last one week high and low of the scrip stood at Rs 474.25 and Rs 454 respectively.

The promoters holding in the company stood at 63.1 % while Institutions and Non-Institutions held 26.6 % and 10.3 % respectively.

The stock is currently trading above its 50 DMA.

Motherson Sumi Systems Ltd :-
BSE 451.20 [5.80]    ([1.27]%)
NSE 450.00 [7.20]    ([1.57]%)


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