Samvardhana Motherson International has announced the dissolution of its indirect wholly owned subsidiary, Motherson DRSC Automotive Product Trading (Shanghai) Co. Ltd. The Market Regulation Administration of Shanghai approved the dissolution effective June 29, 2026, with the company receiving formal approval on July 1, 2026. The subsidiary had ceased operations and was not conducting any business activities, leading to the shareholders approving its closure.

Motherson DRSC was acquired on October 2, 2023, as part of the company's acquisition of the Dr. Schneider Holding GmbH Group. Despite the acquisition, the subsidiary did not contribute to the parent company's financial performance. During FY 2025-26, Motherson DRSC reported an income of INR 50 million and a net worth of INR 25 million. However, these figures represented a negligible contribution to the consolidated results.

The dissolution of Motherson DRSC has no impact on the consolidated net worth of Samvardhana Motherson International. The subsidiary's income contributed 0% to the consolidated revenue, and its net worth contributed 0% to the consolidated net worth as of the end of FY 2025-26. The closure was initiated as the entity was dormant and not generating any operational value.

The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the dissolution process was completed following the necessary regulatory approvals in Shanghai. No financial consideration was involved in the dissolution as the subsidiary was not engaged in any active business.

Financial Impact of Dissolution

The following table outlines the financial metrics of Motherson DRSC for FY 2025-26 and its contribution to the consolidated entity:

The subsidiary's removal from the register does not alter the financial standing of Samvardhana Motherson International. The company continues to focus on its core operations and strategic growth initiatives.

Samvardhana Motherson International has revised the expected completion date for its acquisition of a 49% stake in Vacuform 2000 Proprietary Limited to the second quarter of FY27, pending the satisfaction of all conditions precedent.

Acquisition Timeline Revised

The company had previously indicated June 30, 2026, as the indicative time period for completion. The updated regulatory filing confirms that the transaction is now expected to be concluded by the second quarter of financial year 2026-2027. The acquisition is being executed through MSSL Global RSA Module Engineering Limited, a 100% step-down subsidiary of the company.

Transaction Overview

The deal involves the purchase of 49% of the equity share capital of Vacuform 2000 Proprietary Limited from its initial promoters. The delay extends the timeline for the stake purchase, which remains subject to the satisfactory completion of all conditions precedent.