Samvardhana Motherson International Limited has informed the exchange regarding approval of the Board of Directors for undertaking the Scheme by Motherson Technology Services Limited (MTSL). MTSL will undertake the Scheme for Reduction of its share capital.
MOTHERSON · price
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The Board of Samvardhana Motherson International Limited (SAMIL) approved a Scheme for Reduction of Share Capital by its subsidiary Motherson Technology Services Limited (MTSL), subject to NCLT approval. SAMIL currently holds 92.96% in MTSL, and after buying out the remaining 7.04% minority shareholders (including promoter group holding 3.17%), MTSL will become a 100% wholly owned subsidiary. The total payout is approximately INR 335.25 million, with 7,858,602 equity shares being cancelled at a price determined by a valuation by Price Waterhouse & Co LLP. MTSL is an IT services company with FY25 consolidated revenue of INR 1,136.26 crore, and the scheme is expected to be completed in Q4 FY26.
This is a minor, routine consolidation move — SAMIL is simply buying out small minority shareholders in an existing subsidiary. The total payout of ~INR 33.5 crore is small relative to SAMIL's size, so the financial impact on shareholders is negligible. No material change to the stock is expected; it simply simplifies the group structure.