Samvardhana Motherson Issues $1.1 Billion Corporate Guarantees for Subsidiaries

Samvardhana Motherson International Limited has issued corporate guarantees worth approximately $1.1 billion to support the lenders and creditors of its wholly-owned subsidiaries.

The company stated that this move aims to harmonise the security structure and leverage its consolidated credit strength to benefit its subsidiaries.

Regulatory Filing and Subsidiary Details

According to a regulatory filing with the BSE and NSE, the guarantees were issued on March 29, 2025, for multiple subsidiaries, including:

• Motherson Global Investments B.V.
• Samvardhana Motherson Automotive Systems Group B.V.
• SMP Automotive Systems Alabama Inc.
• SMR Automotive Systems USA Inc.
• SMR Holding Australia Pty Limited

The company stated that its potential liability under these guarantees is capped between 1.05 and 1.10 times the respective facility amounts, with the longest tenure extending until March 18, 2028.

No Financial Impact on Consolidated Statements

Samvardhana Motherson clarified that these guarantees would not impact its consolidated financial statements, as the loans are taken by its wholly-owned subsidiaries. Additionally, the company confirmed that no promoter, promoter group, or related company is involved in this transaction.

By providing these guarantees, Samvardhana Motherson aims to strengthen its subsidiaries’ financial standing while ensuring a structured approach to managing credit exposure across its global operations.

Stock Performance

On April 01, 2025, Samvardhana Motherson share price traded 1.18% lower at ₹129.45 at 11:51 AM (IST). Samvardhana Motherson’s share price reached a 52-week high of ₹217.00, and a 52-week low of ₹115.85. As per BSE, the total traded volume for the stock stood at 2 shares with a turnover of ₹86.47 lakhs.

Conclusion 

Samvardhana Motherson’s issuance of $1.1 billion in corporate guarantees underscores its commitment to strengthening its subsidiaries’ financial stability while optimizing its global credit structure.

With no direct impact on its consolidated financials, the move enhances operational flexibility and aligns with long-term growth objectives. By ensuring structured credit management, the company reinforces its position as a key global automotive supplier, supporting expansion and financial sustainability across international markets.

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