Samvardhana Motherson Share Price: Promoter Sumitomo Wiring likely to sell 3.4% stake in Samvardhana Motherson via block deal on Thursday


Japanese promoter company Sumitomo Wiring Systems will likely sell 3.4% stake in Samvardhana Motherson International through a block deal on Thursday, according to reports.

The floor price for the deal is fixed at Rs 69.9, which is almost 9% discount to the last price close.

Sumitomo Wiring will sell about 230 million shares in the company in a deal that is valued at Rs 1,607 crore. The promoter company held about 17.55% stake in Samvardhana Motherson as of December quarter.

According to the shareholding data available with the exchanges, 68.16% stake is held by promoter and promoter group, while the rest lies with the public.

Top mutual funds, including Nippon India, ICICI Pru MF, own about 8.90% in the company, while foreign investors have about 7.86% stake.

Samvardhana Motherson is one of the leading specialised automotive component manufacturing companies for OEMs. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company supports its customers from more than 300 facilities across 41 countries in five continents.

It has recently diversified to support customers in non-automotive businesses, including technology and industrial solutions, health and medical, aerospace and logistics. Samvardhana is currently the largest auto ancillary in India and is ranked among the top 25 automotive suppliers worldwide.The company has reported a net profit of Rs 454 crore in the December quarter, which is higher by 388% year-on-year. Revenue from operations rose 25% year-on-year to Rs 20,226 crore for the third quarter.

On Wednesday, the company’s stock closed 3.24% lower at Rs 76.25 on NSE. So far this year, the shares of the company have been muted, rising by a marginal 0.73% on a year-to-date basis. In the last six months, the stock is down about 7.91%.

According to Trendlyne data, Samvardhana Motherson has an average target of Rs 98.00 and the consensus estimate represents an upside of 27.60% from the current levels.



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