Samvardhana Motherson International Limited (SMIL), one of India’s largest automotive component manufacturers, has announced that its Board of Directors will meet on May 29, 2025, to consider multiple strategic financial matters, including a potential fundraising proposal.

In an exchange filing submitted to BSE Limited and National Stock Exchange of India Limited, the company stated that the meeting, already scheduled to discuss the audited standalone and consolidated financial results for Q4 and FY25, will also deliberate on a proposal for raising funds through bonds or non-convertible debt instruments, under private placement.

Agenda of the Board Meeting

According to the official statement signed by Alok Goel, Company Secretary, the board will:

• Review and approve the audited financial results for the quarter and year ended March 31, 2025.

• Evaluate an in-principle approval for raising capital via bonds, non-convertible debentures (NCDs), or other debt securities.

• Consider various fundraising structures and combinations, including multiple tranches under the private placement route.

This move comes under the regulatory framework of Regulations 29 and 50 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Fundraising Strategy and Market Context

The proposed fundraising initiative appears to be aligned with Motherson’s long-term capital planning, likely aimed at supporting growth, enhancing liquidity, or refinancing existing debt.

Industry experts suggest that the company may be tapping into favourable interest rate conditions, or preparing a war chest for upcoming strategic acquisitions, capital expenditure, or working capital needs.

Raising funds through non-convertible instruments offers companies an efficient way to secure capital without diluting equity, thereby preserving shareholder value while expanding operational capabilities.

Recent Performance and Strategic Moves

Samvardhana Motherson has consistently pursued growth through global acquisitions and innovation in the auto components space. The company caters to major original equipment manufacturers (OEMs) in India and internationally, particularly in automotive wiring harnesses, mirrors, polymer modules, and lighting systems.

Its financial results for FY25, to be reviewed in the same board meeting, will give further insight into its cash flow health, leverage position, and revenue growth trajectory—factors likely to influence the scale and timing of the proposed capital raise.

Regulatory Compliance and Transparency

The company has made the disclosure under Regulations 29 and 50 of SEBI LODR, ensuring timely intimation to all stakeholders. Such disclosures are crucial for investor confidence and market transparency, especially when involving potential changes in capital structure or debt profile.

About Samvardhana Motherson International Limited

Samvardhana Motherson International Ltd (SMIL) is a diversified global automotive components supplier headquartered in Noida, Uttar Pradesh, with presence in over 40 countries. It is one of the top automotive suppliers in the world, serving some of the largest car manufacturers.

The company operates through various business divisions including Motherson Sumi Wiring India Ltd (MSWIL) and Motherson Sumi Systems Ltd, with strong capabilities in engineering, design, and global supply chain.

Conclusion

With its board scheduled to convene on May 29, 2025, Samvardhana Motherson is poised to not only close FY25 with its financial results but also potentially chart out its capital-raising roadmap for the upcoming year. The planned debt instrument issuance via private placement could offer the company a cost-effective means of financing, as it continues to expand its global footprint and capabilities in the automotive sector.

Stakeholders will watch closely for the outcome of the board’s deliberations and further clarity on the quantum, timing, and purpose of the proposed fundraising plan.

For further information
Samvardhana Motherson International Ltd
CIN: L35106MH1986PLC284510
Investor Relations: investorrelations@motherson.com
Date: 22nd May 2025

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