Samvardhana Motherson International Limited has successfully completed the merger of its indirect wholly owned subsidiaries, SMR Automotive Operations Japan K.K. (SMR Auto-Japan) and Misato Industries Co. Ltd. (Misato). The merger, registered at the Commercial Registry of Japan, was officially recorded on May 21, 2026, following an order dated May 20, 2026. Misato ceased to exist as a separate entity effective from April 1, 2026.
The financial turnover for the entities involved in the merger for the financial year ended March 31, 2026, was significant. Misato reported a turnover of ¥14,061.99 million, equivalent to ₹8,437.20 million, while SMR Auto-Japan had a turnover of ¥82.07 million, equivalent to ₹49.24 million. Following the merger, the assets of SMR Auto-Japan have been transferred to Misato by universal succession.
The merger does not fall within related party transactions, and therefore, considerations such as arm’s length transactions were not applicable. The primary area of business for Misato included manufacturing, trading, and sale of automotive mirrors and components, whereas SMR Auto-Japan was engaged in the trading of automotive mirrors and components.
The rationale behind the merger is to simplify the corporate structure and increase operating efficiency within the organisation. No cash consideration or share exchange ratio was involved in this merger, and there were no changes in the shareholding pattern of the listed entity as a result.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).