Samvardhana Motherson Issues Corporate Guarantee for Wholly Owned Subsidiary's Term Facility

Samvardhana Motherson Issues Corporate Guarantee for Wholly Owned Subsidiary's Term Facility​

Samvardhana Motherson International Limited has agreed to issue a corporate guarantee in favor of DBS Bank Limited concerning a Term Facility availed by its subsidiary, Motherson Global Investments B.V. (MGI B.V.). The agreement was executed on July 03, 2026.

The Term Facility, which is set up with DBS Bank Limited, amounts up to EUR 200,000,000, as per the terms of the facility agreement signed by Samvardhana Motherson International Limited and MGI B.V.

Guarantee Details and Conditions​

Under the executed Agreement, the corporate guarantee provided by the Company to the Bank is subject to specific conditions and timelines. The guarantee must be made effective within six months following the disbursement of the first tranche of the loan under the Facility, upon completion of agreed conditions outlined in the Agreement.

The maximum validity period for the Guarantee extends up to October 31, 2031. Furthermore, the potential liability of the Company under the Guarantee is capped at 105% of the Facility amount, amounting to EUR 210,000,000.

As per the details provided regarding this transaction, there is no interest held by the promoter or the promoter group in this transaction, and it has been conducted at arm's length.

The guarantee concerns a wholly owned subsidiary, MGI B.V., and not the Company directly. Consequently, the Guarantee has no impact on the Consolidated Financial Statements of Samvardhana Motherson International Limited.

MOTHERSON Stock Price Movement​

Samvardhana Motherson International Limited shares slipped on Friday, shedding 0.76% to close at ₹146.30. The stock finished near the day's low, which was recorded at ₹146.02 against a high of ₹149.73, with a volume totaling 10.14 million shares.