Samvardhana Motherson International Ltd (SMIL) has approved the acquisition of a controlling stake in Chinese vehicle-camera systems maker Shenzhen Autocruis Technology Co., Ltd. in an all-cash transaction valued at CNY 153.3 million (about $22.6 million).
The deal will be carried out through SMR Automotive (Langfang) Co., Ltd., an indirect wholly owned subsidiary of the company.
The transaction is subject to regulatory approvals in China and is expected to be completed in Q3 FY27.
Stake to Rise to Nearly 68%
In the first phase, Motherson will invest CNY 153.3 million to acquire a 64.76 percent stake in Shenzhen Autocruis on a fully diluted basis.
Following a share buyback by the target company, Motherson’s holding will increase to 67.78 percent. The remaining stake will continue to be held by the founders and financial investors.
According to the company, the transaction does not involve related parties or promoter interests.
Key details of the deal
- Transaction value: CNY 153.3 million ($22.6 million)
- Initial stake: 64.76 percent
- Post-buyback stake: 67.78 percent
- Mode of payment: All cash
- Expected completion: Q3 FY27
- Acquiring entity: SMR Automotive (Langfang) Co., Ltd.
Motherson has entered into a shareholders’ agreement aimed at ensuring governance and operational control.
Under the agreement:
- The company will have the right to appoint a majority of board members.
- It will have a right of first refusal on future share sales.
- Existing founders will be subject to a three-year non-compete clause.
The provisions are intended to support business continuity and protect intellectual property.
Technology Portfolio and China Market Access
Shenzhen Autocruis develops automotive vision products, including:
- Camera monitoring systems.
- Digital mirrors.
- Surround-view systems.
- Driver monitoring systems.
- In-vehicle recording systems.
These technologies are used in advanced driver-assistance systems and connected mobility applications.
The company supplies products to OEMs and aftermarket customers.
Motherson said the acquisition would expand its Vision Systems business by adding digital and camera-based technologies alongside its traditional mirror products.
The deal also provides access to the Chinese automotive market through Shenzhen Autocruis’ existing OEM relationships.
Revenue Growth at Target Company
Shenzhen Autocruis reported turnover of CNY 46 million ($6.8 million) in its latest financial year.
Its revenue has increased over the past three years:
- CNY 25.5 million
- CNY 29.5 million
- CNY 46 million
Q4 FY26 Performance
For Q4 FY26, Samvardhana Motherson reported revenue of Rs. 34,309 crore, up 17 percent from Rs. 29,317 crore in the corresponding quarter last year. Revenue also rose from Rs. 31,409 crore in Q3 FY26.
Net profit increased 40.1 percent year-on-year to Rs. 1,562 crore, compared with Rs. 1,115 crore in Q4 FY25.
Over the last five years, the company’s revenue and net profit have grown at a CAGR of 17 percent and 31 percent, respectively.
Key financial metrics
- ROCE: 13.1 percent
- ROE: 10.9 percent
- EPS (Q4 FY26): Rs. 1.42
- Debt-to-equity ratio: 0.47 times
On June 17, shares of Samvardhana Motherson International Ltd were trading at Rs. 145, compared with the previous close of Rs. 147.6. The stock touched an intraday high of Rs. 147.59 and a low of Rs. 142.63.
The company had a market capitalisation of Rs. 1,52,881 crore, with a price-to-earnings ratio of 37 times, compared with the industry median of 27.63 times.
TL;DR:
Samvardhana Motherson will acquire a controlling stake in China’s Shenzhen Autocruis for $22.6 million. The deal will eventually raise its ownership to 67.78% and strengthen its vehicle vision systems business.
AI Summary
- Motherson will invest $22.6 million to acquire Shenzhen Autocruis.
- Its stake will increase from 64.76% to 67.78% after a buyback.
- The Chinese company develops digital mirrors and vehicle-camera systems.
- The transaction is expected to close in Q3 FY27.
- Motherson’s Q4 FY26 net profit rose 40.1% year-on-year.
