Samvardhana Motherson Allots 10.32 Crore Shares After CCD Conversion

10,32,09,960 new equity shares issued at Rs 140.50 per share price point.
Paid-up equity capital increases to 10,65,76,52,561 shares following the conversion event.

Reader Takeaway: Equity base expands via debt conversion, effectively reducing outstanding convertible debt burden for the company.

What just happened

Samvardhana Motherson International Limited has successfully concluded the allotment of 10.32 crore equity shares. This follows the conversion of 145,010 compulsorily convertible debentures (CCDs) held by investors. The allotment process was finalized following board approval on October 8, 2026, after applications were processed during the first week of October.

Why this matters

The conversion is a significant step in the company's capital management strategy, directly converting debt instruments into equity. Each share was issued at a price of Rs 140.50, which includes a premium of Rs 139.50 over the face value of Rs 1. The conversion price was set at a 13.83% discount to the 7-trading day volume-weighted average price (VWAP) on the NSE.

Capital Structure Impact

The total number of issued and paid-up equity shares has risen from 10,55,44,42,601 to 10,65,76,52,561. These new shares carry the same rights as existing equity, including full voting and dividend eligibility. The converted CCDs are now considered extinguished.

What changes now

Only 4,990 CCDs remain outstanding out of the original series. These instruments are set for automatic, compulsory conversion on their maturity date of September 20, 2027. The company has also committed to settling any residual fractional amounts and accrued interest related to these debentures within seven working days.

What to track next

Investors should monitor the listing process for these new shares on both the BSE and NSE, as well as the final maturity of the remaining 4,990 CCDs in September 2027.