Samvardhana Motherson International Limited has issued a corporate guarantee for a credit facility availed by its subsidiary, Motherson Electronic Components Private Limited. The guarantee supports a credit facility from The Hongkong and Shanghai Banking Corporation Limited. The company holds a 90% stake in the subsidiary. This corporate guarantee is capped at INR 16,000,000,000/- plus interest and is not expected to materially impact the listed entity’s financials or operations.
Corporate Guarantee Issued for Subsidiary
Samvardhana Motherson International Limited announced on June 10, 2026, that it has issued a corporate guarantee in favor of The Hongkong and Shanghai Banking Corporation Limited. This guarantee is in support of a credit facility that has been availed by its subsidiary, Motherson Electronic Components Private Limited (MECPL).
Details of the Transaction
The company currently holds 90% of the paid-up equity share capital of MECPL. The subsidiary has secured a credit facility with an aggregate value of up to INR 16,000,000,000/- (Indian Rupees Sixteen Thousand Million only) from The Hongkong and Shanghai Banking Corporation Limited. Samvardhana Motherson International Limited’s corporate guarantee is intended to secure this credit facility.
Financial Impact
The potential liability for Samvardhana Motherson International Limited under this guarantee is capped at the total facility amount of INR 16,000,000,000/- plus any applicable interest. The company has stated that there is no material impact expected from this corporate guarantee on the financial position, operations, or other activities of the listed entity.
Promoter Interest
There is no promoter/ promoter group/ group company interest in this specific transaction, and it is conducted at ‘arm’s length’.
Source: BSE
