Samvardhana Motherson International Limited has issued a corporate guarantee for a credit facility of INR 16,000,000,000 (₹16,000 crore). This guarantee is in favour of Axis Bank Limited and secures the credit facility availed by its subsidiary, Motherson Electronic Components Private Limited (MECPL). The issuance was approved by shareholders at the 39th Annual General Meeting on July 30, 2026.
Corporate Guarantee Issued for Subsidiary Financing
Samvardhana Motherson International Limited has officially announced the issuance of a corporate guarantee to Axis Bank Limited. This guarantee supports a significant credit facility amounting to INR 16,000,000,000 (Indian Rupees Sixteen Thousand Million only), which has been availed by the company’s subsidiary, Motherson Electronic Components Private Limited (MECPL).
Subsidiary’s Financial Arrangements
The corporate guarantee ensures the credit facility provided by Axis Bank Limited to MECPL. As of the announcement date, the paid-up equity share capital of MECPL is held by Samvardhana Motherson International Limited (90%) and Biel Crystal (Singapore) Private Limited (10%). The issuance of this guarantee is in line with the terms and conditions of the transaction and was previously approved by the shareholders during the company’s 39th Annual General Meeting held on July 30, 2026.
Potential Liability and Impact
The potential liability for Samvardhana Motherson International Limited under this corporate guarantee is capped at the total facility amount, which is INR 16,000,000,000 plus any applicable interest. The company has stated that there is no material impact of this corporate guarantee on its financial standing, operations, or other business activities.
Source: BSE
