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.

Samvardhana Motherson International has established a deadline of July 14, 2026, for shareholders to submit declarations and documents necessary to determine the Tax Deducted at Source (TDS) rate on the final dividend for the financial year ended March 31, 2026. The company's Board recommended a final dividend of Re. 0.25 per equity share on May 20, 2026, which will be paid following the Annual General Meeting (AGM) scheduled for July 30, 2026. Under the provisions of the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is required to deduct TDS at applicable rates.

TDS Rates for Resident Shareholders

The applicable TDS rate for resident shareholders varies based on the validity of their Permanent Account Number (PAN) and specific declarations submitted. Shareholders with a valid PAN are subject to a 10% TDS rate, though no deduction applies if the aggregate dividend distribution does not exceed ₹10,000. A higher rate of 20% applies to shareholders with no PAN, an invalid PAN, or an inoperative PAN that is not linked with Aadhaar as per Section 262(6) of the IT Act.

Resident individuals may submit Form 121 to claim a nil rate of TDS. This form replaces the erstwhile Forms 15G and 15H under the new tax regime. Specific entities such as Mutual Funds specified under Schedule VII of the IT Act, insurance companies, and Alternative Investment Funds (Category I and II) are eligible for a nil TDS rate upon submission of self-declarations and valid registration certificates.

Guidelines for Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), are subject to a base TDS rate of 20% plus applicable surcharge and cess, unless a lower Tax Treaty rate applies. To benefit from tax treaty rates, non-residents must provide a Tax Residency Certificate (TRC) valid for FY 2026-27, a copy of their PAN, and a self-declaration confirming their eligibility and beneficial ownership status.

Specific categories of non-resident investors have defined rates. Category III Alternative Investment Funds located in International Financial Services Centre and Category I FPIs are subject to a 10% rate plus surcharge and cess. Sovereign Wealth Funds and Pension funds notified under Schedule V of the IT Act, as well as subsidiaries of the Abu Dhabi Investment Authority, qualify for a nil TDS rate provided they submit evidence of the applicable notification and a self-declaration.

Submission and Compliance Details

Shareholders must upload all applicable documents as a single PDF file on the portal of KFin Technologies Limited, the company's Registrar and Transfer Agent, by 1700 Hours IST on July 14, 2026. Physical documents may also be sent to the RTA's office in Hyderabad, provided they arrive before the deadline. Any communication received after this date will not be considered, and tax will be deducted at the maximum applicable rate in cases of incomplete or missing information.

The company emphasized that recording a valid PAN in its records is mandatory. In the absence of a valid PAN, tax will be deducted at a higher rate of 20% plus surcharge and cess. Shareholders are advised that if tax is deducted at a higher rate due to insufficient documentation, they may file a return of income to claim a refund. The company will subsequently issue a TDS certificate, and shareholders can view the tax credit in Form 168 on the income tax portal.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE775A01035/1155b650e0894ee0.pdf