Universal lockdown has hit all the sectors of industries including Automakers, to maintain liquidity in this Corona pandemic is a huge challenge in recent times.
The Corona Pandemic lockdown has put the cash flow position of many auto manufacturers in a very tight situation.
Smooth cash flow is must for any organization for their business continuity and to meet their other expenses during and after lockdown. Manufacturers are taking the debt rout to raise money to ease cashflow.
Hinduja Group, manufacturer of Ashok Leyland announced that, they will raise Rs 300 crore through issuing non-convertible debentures (NCDs) on private placement basis.
In a BSE filing Ashok Leyland said, “The company’s board in a meeting has approved the issuance of listed, NCD, with an aggregate amount up to Rs 300 crore with a green-shoe option of Rs 200 crore on private placement basis, in one or more tranches to certain eligible investors permitted to invest in the NCDs”
Other player of the auto sector are also taking the NCDs rout, TVS Motors raised a sum of Rs 500 crore through allotment of NCDs last month and M&M also raised Rs 1000 crore by issuing securities on a private placement basis.