Samvardhana Motherson International Limited has submitted with exchange an update on conversion of CCDs invested in a subsidiary company as announced on March 21, 2025.
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Samvardhana Motherson International Limited had invested Rs. 175 crore in its 55% subsidiary CIM Tools Private Limited through 17,500 compulsory convertible debentures (CCDs) of Rs. 1 lakh each, allotted in March 2025. These CCDs were due for conversion by June 30, 2025, and on that date the Board of CIM Tools approved their conversion into 11,08,296 equity shares of Rs. 10 face value at a premium of Rs. 1,569 per share, totaling roughly Rs. 175 crore. As a result of this conversion, Motherson's stake in CIM Tools has increased from 55% to 68.14%.
This is a routine capital restructuring within an existing subsidiary and does not involve any new acquisition or cash outflow. The higher equity stake in CIM Tools strengthens Motherson's control over the subsidiary but is unlikely to have a meaningful impact on the listed stock price.