Sundaram Clayton Limited has completed the merger of two of its wholly owned US subsidiaries, streamlining its international operations through corporate restructuring. The company informed stock exchanges about this significant development under Regulation 30 of SEBI Listing Regulations.

Merger Details and Timeline

The merger involved Sundaram-Clayton (USA) Limited (SCL USA) being merged with Sundaram Holding USA Inc. (SHUI), with effect from December 16, 2025. The Certificate of Merger was received on February 4, 2026, at 07.09 P.M. (IST), formally completing the transaction.

Entity Profiles and Financial Performance

The two entities involved in the merger had distinct operational profiles and financial standings. SCL USA, incorporated on June 15, 2012, under Illinois state laws, was a non-operating company with no recorded revenues as per the last audited accounts as on March 31, 2025.

SHUI, incorporated as a C Corporation under Delaware laws on September 9, 2015, operates in the manufacturing sector focusing on aluminium castings and reported a turnover of Rs. 230.31 crores.

Strategic Rationale and Regulatory Compliance

The merger was executed to simplify cost optimization, compliance, and legal requirements across entities. Since the transaction occurred between two wholly-owned subsidiaries, it falls under the exemption provided by Regulation 23(5)(c) of SEBI Listing Regulations, eliminating the need for arm's length transaction requirements.

The restructuring will not result in any changes to the shareholding pattern of the listed entity, as no capital increase or share allocation occurred during the merger process. Following the completion, SCL USA has ceased to be a wholly owned subsidiary of Sundaram-Clayton Limited, with SHUI continuing as the surviving entity.

Sundaram Clayton has reported its third-quarter consolidated financial results, showing continued losses during the period. The company's performance reflects ongoing challenges in its operational environment.

Financial Performance Overview

The automotive components manufacturer recorded a consolidated net loss that expanded compared to the same period in the previous year. The financial metrics demonstrate the company's current operational difficulties.

Year-on-Year Comparison

The third-quarter results show a deterioration in the company's bottom-line performance. The net loss widened by ₹79 million when compared to the corresponding quarter of the previous fiscal year, indicating increased financial pressure on the organization.

The company's consolidated operations continue to face headwinds, as reflected in the expanded loss figures. This performance suggests that Sundaram Clayton is navigating through a challenging operating environment that has impacted its profitability metrics.

Current Financial Position

The reported figures represent the company's consolidated financial performance, encompassing all its business operations and subsidiaries. The widening loss margin indicates that the company's efforts to improve operational efficiency and cost management during the quarter were insufficient to offset the prevailing business challenges.