The automotive components manufacturer converted ₹175 crore worth of compulsory convertible debentures into equity shares, raising its ownership from 55% in its subsidiary.
01 Jul 2025 | 1380 Views | By Angitha Suresh
Samvardhana Motherson International Limited has increased its shareholding in subsidiary CIM Tools Private Limited to 68.14% from 55% following the conversion of compulsory convertible debentures worth ₹175 crore into equity shares on June 30, 2025.
The Board of Directors of CIM Tools approved the conversion of 17,500 compulsory convertible ...
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Samvardhana Motherson International Limited has increased its shareholding in subsidiary CIM Tools Private Limited to 68.14% from 55% following the conversion of compulsory convertible debentures worth ₹175 crore into equity shares on June 30, 2025.
The Board of Directors of CIM Tools approved the conversion of 17,500 compulsory convertible debentures, each with a face value of ₹1 lakh and carrying a 9.25% interest rate, into 11,08,296 equity shares. The conversion was executed at a face value of ₹10 per share with a securities premium of ₹1,569 per equity share, totaling ₹174.99 crore.
The debentures were originally allotted to Samvardhana Motherson International in March 2025 and were scheduled for mandatory conversion by June 30, 2025. The conversion represents a strategic move by the parent company to strengthen its control over the subsidiary's operations.
Samvardhana Motherson International, listed on both BSE and NSE with scrip code 517334 and symbol MOTHERSON respectively, disclosed the transaction to stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.
The company, headquartered in Noida with its registered office in Mumbai's Bandra Kurla Complex, is a major player in the automotive components sector. CIM Tools operates as a subsidiary within the Motherson group's business portfolio.
The conversion increases Samvardhana Motherson's direct equity control in CIM Tools by over 13 percentage points, providing the parent company with enhanced decision-making authority and operational oversight of the subsidiary's business activities.