Samvardhana Motherson International Ltd said its step-down subsidiary SMRC Automotive Holdings Netherlands B.V., plans to raise capital by issuing senior secured notes denominated in US dollars.
SMRC Automotive offers interior components to global automotive manufacturers. Its products include instrument panels, door panels, console modules, decorative parts and cockpit modules.
Samvardhana Motherson will provide an unconditional and irrevocable corporate guarantee on behalf of SMRC Automotive for guaranteeing the notes, the company said in an exchange filing on Wednesday.
The auto component maker did not provide any additional details regarding the note issuance.
SMRC was earlier known as Reydel Automotive Group, which Samvardhana Motherson Group acquired in 2018.
In May, Samvardhana Motherson International’s management said it would invest Rs 5,000 crore in capital expenditure for various initiatives, including the setting up greenfield facilities for the current financial year. Last year, the company’s capital expenditure stood at Rs 4,000 crore and a large part of this capex was spent in emerging economies across auto and non-auto businesses. ENDS