SMP Automotive Systems Alabama Inc, an indirect wholly owned subsidiary of Samvardhana Motherson International Limited , has been penalised USD 43,200 by the Internal Revenue Service (IRS) USA. The penalty, equivalent to INR 4.17 million, was imposed due to a delay in filing a specific form related to deferred vested benefits. The company stated that this order does not have a material impact on its financials or operations.

Details of the Penalty Order

The penalty order, dated July 13, 2026, was received by the subsidiary on July 20, 2026. The disclosure was submitted to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The delay in disclosure was attributed to the order being under review by parties and differences in time zones.

Reason for Violation

The regulatory action was taken due to a delay in the filing of Form 8955-SSA. This form is used for the annual registration of separated participants with deferred vested benefits for the year ended December 31, 2024.

Samvardhana Motherson International Limited has completed the acquisition of an 81% stake with voting rights in Yutaka Giken Co., Ltd. and an 11% stake in its subsidiary, Shinnichi Kogyo Co., Ltd., through its indirect wholly owned subsidiary, Motherson Global Investments B.V. The transaction closed on July 21, 2026, following the buyback of shares held by Honda Motor Co., Ltd. by Yutaka Giken. This strategic expansion strengthens the company's presence in the automotive components sector.

Transaction Overview

The acquisition was executed pursuant to definitive agreements signed by the parties involved. Yutaka Giken Co., Ltd. is a company incorporated under the laws of Japan and was listed on the Tokyo Stock Exchange. Shinnichi Kogyo Co., Ltd. is a subsidiary of Yutaka Giken, with 62% ownership held by the latter. The final shareholding structure post-transaction sees Motherson Global Investments B.V. holding 81% of Yutaka Giken, while Honda Motor Co., Ltd. retains a 19% stake.

The following table summarizes the key details of the transaction:

Regulatory Disclosures

The completion of the deal follows the receipt of the Voluntary Sale Permission Decision from the competent court on July 17, 2026. The disclosure regarding the final closing was submitted to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 30(7) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was signed by Alok Goel, Company Secretary of Samvardhana Motherson International Limited.