Samvardhana Motherson arm acquires 34% stake in Motherson Auto

19 Aug 2024 , 01:29 PM

Samvardhana Motherson International Ltd (SAMIL) has successfully acquired a 34% stake in Motherson Auto Solutions Ltd (MASL) from Sojitz Corporation.

On August 2, 2024, SAMIL’s board approved the acquisition of ₹236.5 Crore, subject to certain conditions.

Samvardhana Motherson Innovative Solutions Ltd (SMISL), SAMIL’s 100% subsidiary, completed the transaction on August 17, 2024, once all prerequisites were met.

With this transaction, MASL becomes an indirect wholly owned subsidiary of SAMIL.

The acquisition is expected to boost SAMIL’s position in the auto component market while also strengthening its global presence.

Samvardhana Motherson International Ltd (previously Motherson Sumi Systems Ltd) is an Indian multinational automobile component manufacturer headquartered in Noida. It manufactures wire harnesses, plastic components, and rearview mirrors for passenger vehicles.

Samvardhan Motherson reported strong Q1FY25 results. Its profit after tax for the first quarter of fiscal year 25 was ₹995 Crore, up 65% from ₹601 Crore in the first quarter of fiscal year 24. Q1 revenue increased by 29% year-on-year to ₹28,868 Crores from ₹22,462 Crores in Q1FY24. EBITDA climbed by 44%. Diversification and development in non-auto businesses helped to counterbalance a somewhat flat quarter for the automotive industry.

At around 11.22 AM, Samvardhana Motherson was trading 0.81% higher at ₹187.18, against the previous close of ₹185.68 on NSE. The counter touched an intraday high and low of ₹187.55, and ₹185.35, respectively.

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