Samvardhana Motherson International Limited has announced that its subsidiary, Motherson Technology Services Limited (MTSL), has received approval from the Hon’ble National Company Law Tribunal (NCLT) for its share capital reduction. This move, following shareholder approval and statutory compliance, streamlines the group structure by providing an exit to minority shareholders and solidifying the parent entity’s ownership.
NCLT Approves Share Capital Reduction for Motherson Technology Services
Samvardhana Motherson International Limited has formally announced that its subsidiary, Motherson Technology Services Limited (MTSL), has received the necessary approval from the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench-III, for its proposed reduction of share capital. The NCLT’s order, dated August 13, 2026, confirms the successful completion of the capital reduction process initiated under Section 66 of the Companies Act, 2013.
Shareholder and Statutory Approvals
The process for the reduction of share capital was previously informed to stakeholders via disclosures on August 29, 2025, October 16, 2025, and August 14, 2026. MTSL had undertaken the reduction of its issued, subscribed, and paid-up equity share capital, which was subsequently approved by its shareholders through a Special Resolution on September 29, 2025. The NCLT’s approval marks the final significant step in this corporate restructuring.
Financial Impact and Restructuring Rationale
The capital reduction involves the cancellation of 78,58,602 equity shares, representing 7.04% of the total paid-up equity share capital. This action aims to provide an exit opportunity for minority shareholders whose investments had become illiquid following the voluntary delisting of MTSL’s shares from the Delhi Stock Exchange in 2008-2009. Post-reduction, MTSL will become a wholly-owned subsidiary of its parent entity, Samvardhana Motherson International Limited, streamlining the group’s corporate structure.
Details of the Reduction
Prior to the reduction, MTSL had 11,16,48,653 equity shares with a total value of approximately ₹111.65 crore. Following the approved reduction, the paid-up equity share capital will stand at approximately ₹103.79 crore, comprising 10,37,90,051 equity shares. The reduction amounts to approximately ₹7.86 crore, with minority shareholders receiving approximately ₹42.66 per share, including nominal value and premium.
Source: BSE
