India’s frontrunner automotive equipment manufacturer discussed on Today about raising funds using insurance of non-convertible debentures in Rs 1500- Rs 3000 crore range. The sweeping hit of COVID-19 has impacted automobile manufactures and component supplier alike, where suppliers have been raising money through debt to sustain amid the crisis.

The tenure of the NCDs will be three years with a fixed coupon rate. Rating agency India Ratings and Research has assigned ‘AAA/Negative’ to the debt instruments.

“The Committee of Directors (Fund Raising) of the Board of Directors of the company in its meeting held today September 8, 2020, has approved the issuance of Rated, Un-Secured, Listed, Redeemable Non-Convertible Debentures (NCDs), with an aggregate amount up to Rs 1500 crore which may be increased up to Rs 3000 crore,” the company said in a regulatory filing.

April saw issues in liquidity after halted operations worldwide because of lockdowns. The VC Sehgal-led company planned to raise Rs 1000 crore following these issues.

Motherson Sumi reported a consolidated net loss Rs 1191.65 crore in the June quarter due to the shutdown of its factories in India and other markets due to the outbreak of the Covid-19 pandemic. The losses incurred during the period were limited by the significant reduction in taxes paid during the quarter.

The previous year’s corresponding time period observed a net profit of Rs360.64 crore. In the meantime, there was a decline in revenue during the quarter by 49.48% year-on-year to Rs 8431.23 crore. It reported earnings before interest, tax, depreciation and amortization or Ebitda loss of Rs 319.8 crore compared to a profit of Rs 1275.74 crore in the corresponding quarter last fiscal.