Samvardhana Motherson International Limited has issued ₹300 crore in commercial paper with a tenure of 64 days. The unsecured instrument carries an interest rate of 6.25% and was allotted to Kotak Mahindra Bank Limited.

The allotment date for the issue was September 24, 2026, with maturity scheduled for November 27, 2026. The company structured the debt as short-term working capital financing, listing the instruments on the BSE. Interest is charged upfront, meaning investors receive the principal amount upon maturity without periodic coupon payments.

Issue details

The commercial paper consists of 6,000 units with a face value of ₹5 lakh each. The security is unsecured, meaning it is not backed by specific assets or collateral. No special rights or privileges are attached to these instruments.

Funding structure

The issuance reflects a standard short-term liquidity management strategy. By opting for a 64-day tenure, the company aligns its debt obligations with its immediate cash flow cycles. The upfront interest charge simplifies the payment schedule, requiring only a single principal repayment on the maturity date.

What the numbers show

The 6.25% coupon rate indicates a cost of capital consistent with high-credit-quality corporate borrowers in the current market environment. The choice of Kotak Mahindra Bank as the sole subscriber suggests a direct institutional placement rather than a broad retail offering, allowing for efficient capital raising with minimal distribution costs.

Samvardhana Motherson International Ltd announced that its wholly owned subsidiary, Samvardhana Motherson Innovative Solutions Limited (SMISL), has completed the sale of its entire shareholding in AES (India) Engineering Limited. The transaction, involving a 26% equity stake, was finalized on September 24, 2026.

The buyer is T-NET JAPAN Co., Ltd. (T-NET), the joint venture partner in AES India. SMISL held the 26% equity through itself and its nominees. Consequently, the effective capital holding of Samvardhana Motherson International in AES India has been reduced to zero following this divestment.

Transaction Details

The Board of Directors of AES India approved the transfer of shares from SMISL and its nominees to T-NET and its nominees during a meeting held on September 24, 2026. The completion of the transaction was contingent upon the fulfillment of all conditions precedent, which were met by the closing date.

This disclosure was made pursuant to Regulation 30(7) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially informed the stock exchanges of its intent to sell the stake via a letter dated August 10, 2026.

Business Context

AES India operates as a Joint Venture between SMISL and T-NET. The company provides Engineering, Procurement and Construction (EPC) services for various industries, including:

• Automotive
• Rails
• Agriculture & Construction Equipment
• White Goods
• General Manufacturing

T-NET, the acquiring entity, specializes in support services for social infrastructure projects such as roads, bridges, and tunnels. Additionally, T-NET engages in production facility-related businesses for automotive, plant engineering, and industrial machinery sectors, utilizing mechanical equipment, material handling systems, and IT systems.

Strategic Implications

The exit from AES India marks a consolidation of Samvardhana Motherson's portfolio by divesting from a minority stake in an EPC-focused joint venture. With T-NET now holding full control of AES India, the operational synergy with T-NET's core infrastructure and industrial machinery expertise may strengthen the JV's market position in EPC services.