Samvardhana Motherson International Limited has approved the acquisition of a 64.76% controlling stake in Shenzhen Autocruis Technology Co., Ltd. for CNY 153.3 million (approximately USD 22.6 million). The transaction, executed by its indirect wholly-owned subsidiary SMR Automotive (Langfang) Co., Ltd. via a primary capital increase, aims to expand the company's product portfolio in automotive vision and camera-based systems. This strategic move strengthens in-house technology capabilities in image quality, algorithms, and video processing while providing access to the Chinese automotive market.

Following the initial acquisition, Shenzhen Autocruis Technology will undertake a buy-back of its equity. Upon successful completion of this buy-back, SMR Langfang's shareholding will increase to 67.78% of the equity share capital of the target company. The remaining 32.22% will be held by founding shareholders and other financial investors.

Strategic Rationale and Impact

The acquisition aligns with the company's objective to diversify and enhance its offerings in the automotive components sector. Shenzhen Autocruis Technology specializes in designing and developing Camera Monitoring Systems (CMS), Full Digital Mirror (FDM) systems, surround-view systems, Driver Monitoring System (DMS), and Digital Video Recorders (DVR). These products serve both OEMs and aftermarket customers. The deal is expected to facilitate entry into the Chinese market through established relationships with key commercial vehicle and passenger car OEMs.

Transaction Details

The transaction is subject to customary regulatory filings and approvals in the People's Republic of China, including applicable corporate and foreign-investment registrations. It is expected to be completed by Q3 FY 2027, subject to the satisfaction of agreed conditions precedent. As part of the deal, a Shareholders Agreement has been executed granting Motherson the Right of First Refusal, majority board representation, and a three-year non-compete obligation for the existing founders.

Financial Overview of Target

Shenzhen Autocruis Technology, incorporated on April 28, 2016, is headquartered in Shenzhen with R&D operations in Wuhan and Shenzhen and a production facility near Ningbo. The company operates in the automotive components industry, specifically in camera-based systems, which is similar to the Vision Systems vertical of Samvardhana Motherson International Limited. The table below presents the target company's turnover over recent financial years:

Samvardhana Motherson International has successfully issued commercial papers worth INR 300 crore to raise short-term funds. The issuance carries a coupon rate of 7.20% and was allotted on June 6, 2026, with the securities listed on BSE Limited.

The commercial papers consist of 6,000 instruments, each with a face value of INR 5,00,000. These unsecured debt instruments have a tenure of 87 days and are set to mature on September 11, 2026. The interest is charged upfront, and the principal amount will be repaid on the maturity date.

The issuance is in favour of Kotak Mahindra Bank Limited. The ISIN for the commercial papers is INE775A14822. There are no special rights, interests, or privileges attached to these instruments.

Details of the Issuance

The company confirmed that there has been no delay in the payment of interest or principal amount for a period exceeding three months from the due date. Furthermore, there are no outstanding letters or comments from regulatory authorities regarding the payment of interest or principal on these instruments.