Motherson Sumi Acquires Samvardhana Motherson Advanced Innovations Ltd

On July 24, 2024, Motherson Sumi Systems Limited announced via a stock exchange filing that it had acquired Samvardhana Motherson Advanced Innovations Limited, incorporated under Samvardhana Motherson Innovative Solutions Limited (SMISL).

SMISL, a wholly owned subsidiary of Samvardhana Motherson International Limited, will hold the entire share capital (100%) of the newly acquired entity, including shares held by nominees.

Acquisition Details

Related Party Transaction
This acquisition does not involve related-party transactions. The promoter, promoter group, and group companies have no interest in the entity being acquired, and the transaction is conducted at arm’s length.

Industry
The entity operates in the manufacturing and assembly of parts and subparts for the automotive and non-automotive sectors and related industries.

Purpose and Impact of Acquisition
The acquisition aims to manufacture, assemble, market, trade, import, export, source, and tool all kinds of parts and subparts for both automotive and non-automotive sectors, aligning with the listed entity’s main business activities.

Completion Timeframe
The acquisition was completed on July 23, 2024, which is the incorporation date.

Nature of Consideration
The acquisition involves subscribing to 50,000 equity shares with a face value of ₹10 each. These shares will be purchased by SMISL for cash at par value. The total cost of the acquisition is ₹5,00,000.

Background of Acquired Entity
Samvardhana Motherson Advanced Innovations Limited will focus on manufacturing, assembling, marketing, trading, importing, exporting, sourcing, and tooling for various parts and subparts for both automotive and non-automotive sectors. As the entity is newly incorporated, there is no history of turnover or significant information regarding its past.

About Motherson Sumi Systems Limited

Motherson Sumi Systems Limited, a major player in India’s automobile spare parts industry, is a joint venture between Japan’s Sumitomo Wiring Systems Ltd. and India’s Samvardhana Motherson International Ltd. Founded in 1986, it is headquartered in Mumbai, Maharashtra. The company specialises in various products and services, including precision metals and modules, wiring harnesses, technology and industrial solutions, and logistics solutions.

On July 25, 2024, the share price of Samvardhana Motherson International Ltd opened at ₹188.00, touching the high price of ₹189.80 as of 10:11 AM on NSE.

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