Auto components maker Shriram Pistons and Rings (SPRL) has successfully raised ₹1,000 crore from mutual fund investors to fund its ₹1,670-crore acquisition of local entities of Spanish company Grupo Antolin. According to reports from The Economic Times, the fundraising was completed through two separate sets of non-convertible debentures (NCDs) with maturities of 18 months and 24 months respectively. The 18-month NCDs were priced at 7.30% while the 24-month NCDs were priced at 7.35%. As reported by sources familiar with the NCD issues, these funds were raised to fund the acquisition announced in December, with the rest of the money to be arranged by the company via internal accruals.
On December 5, SPRL announced its acquisition of Antolin Lighting India Private Limited (ALIPL), Grupo Antolin India Private Limited (GAIPL), and Grupo Antolin Chakan Private Limited (GACPL). As reported by The Economic Times, this acquisition provides access to a portfolio of modular headliners, sunvisors, door panels, centre floor consoles, and pillar trims. The deal allows SPRL to expand beyond traditional powertrain components into the fast-growing automotive interiors segment, diversifying the company's product portfolio beyond engine-dependent components.
The NCDs were largely subscribed by major mutual funds including ICICI Prudential, DSP Mutual Fund, Mirae Asset Management, and Aditya Birla Mutual Fund. According to The Economic Times, Axis Bank served as the sole arranger for these deals, which were priced earlier this week. The NCDs were subscribed largely by mutual funds, with emails sent to the individual mutual funds, Axis Bank and SPRL remaining unanswered until the publication of this report. This acquisition was valued at approximately ₹1,670 crore and represents a significant strategic move for SPRL's business expansion.
Earlier this month, India Ratings and Research (Ind-Ra) upgraded SPRL's credit ratings and proposed NCDs to 'IND AA+' from 'IND AA'. As reported by The Economic Times, Ind-Ra expects the acquisitions to strengthen SPRL's business profile by increasing diversification into engine-agnostic segments. The rating agency noted that current products including pistons, rings, and valves are engine-components exposed to EV transition risks, making these acquisitions strategically important for revenue base diversification. The acquisitions will also boost the total scale of operations of the consolidated entity, providing SPRL with access to new automotive interior products and reducing dependence on traditional powertrain components.
