The money was raised by issuing two separate sets of non-convertible debentures (NCDs), maturing in 18 months and 24 months respectively, the people cited above said.
“The 18-month NCDs were raised at 7.30%, while the 24-month NCDs were raised at 7.35%. The funds were raised to fund the acquisition announced in December. The rest of the money will be raised by the company through internal accruals,” said a person familiar with the NCD issues.
Axis Bank was the sole manager for the deal priced earlier this week.
The NCDs were mostly subscribed by mutual funds, such as ICICI Prudential, DSP Mutual Fund, Mirae Asset Management and Aditya Birla Mutual Fund, among others. Emails sent to individual mutual funds, Axis Bank and SPRL were not responded to till the publication of this report.
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The value of this acquisition is approximately Rs. 1,670 crore and allowed SPRL to expand beyond traditional powertrain components into the fast-growing automotive interiors segment.
On 5 December, SPRL announced the acquisition of Antolin Lighting India Pvt Ltd (ALIPL), Grupo Antolin India Pvt Ltd (GAIPL), and Grupo Antolin Chakan Pvt Ltd (GACPL), which gave it access to a portfolio of modular headliners, sunvisors, sunvisors, door console companies etc. said in a release.
Earlier this month, India Ratings and Research (Ind-Ra) upgraded the company’s ratings and proposed non-convertible debentures (NCDs) to ‘IND AA+’ from ‘IND AA’. “Ind-Ra expects the acquisition to strengthen SPRL’s business profile by increasing diversification into engine-agnostic segments.
The company’s current products, including pistons, rings and valves are engine components exposed to the risk of the EV transition; Thus, this acquisition is likely to help the company diversify its revenue base. The acquisition will also boost the consolidated entity’s overall scale of operations, the rating agency said.
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