Sumitomo Wiring offloads 4.4% stake in Samvardhana Motherson for Rs 3,633 cr | Business News – Business Standard
The shares were sold within the price range of Rs 121.03-121.25 each, taking the combined deal value to Rs 3,633.20 crore.
Japan’s Sumitomo Wiring Systems on Wednesday divested 4.4 per cent stake in Samvardhana Motherson International Ltd for Rs 3,633 crore through open market transactions.
Sumitomo Wiring Systems (SWS) is one of the promoters of Samvardhana Motherson International Ltd (SAMIL).
According to the bulk deal data available with the National Stock Exchange (NSE), Sumitomo Wiring Systems has sold a total of 30 crore shares, representing a 4.43 percent stake in SAMIL.
The shares were sold within the price range of Rs 121.03-121.25 each, taking the combined deal value to Rs 3,633.20 crore.
After the sale of the stake, SWS’s shareholding fell from 14.15 percent in the company to 9.72 percent.
The combined shareholding of the promoters and promoter group entities has fallen from 64.78 per cent to 60.35 per cent stake in Samvardhana Motherson International.
As of December 2023, SWS and its wholly owned subsidiary HK Wiring Systems Ltd (HKWS) jointly held a 14.32 percent stake in the automotive parts supplier.
Details of the buyers of SAMIL’s shares could not be ascertained.
On Wednesday, shares of Samvardhana Motherson International fell 3.83 percent to close at Rs 120.65 apiece on the NSE.
In March 2023, Sumitomo Wiring Systems transferred a 3.4 percent stake in Samvardhana Motherson International for Rs 1,612 crore.
SWS was Motherson’s first joint venture partner and promoter of SAMIL since its initial public offering (IPO) in 1993.
As part of a restructuring announced in 2020, auto parts major Motherson Group had demerged the Domestic Wiring Harness (DWH) from the then Motherson Sumi Systems Ltd (MSSL) into a new listed company, Motherson Sumi Wiring India Ltd.
This was done to meet the long-standing request of the company’s joint venture partner, Sumitomo Wiring Systems (SWS), who wanted to keep its participation focused on the DWH business in India, which is its main area of interest.
As part of the restructuring after the demerger of DWH, all auto parts and related businesses were brought under the group company Samvardhana Motherson International Ltd.
First print: March 6, 2024 | 8:35 PM IST