The share price of one of the largest automotive OEM manufacturers fell up to 3.5 percent to Rs 101.35 per share after the promoter group entity appointed an investment banker to sell the entire stake in the company.
At 1:25 p.m., Samvardhana Motherson International Ltd shares were trading at Rs 102.25 per share, down 3 percent on NSE from the previous close price. The company has a market capitalization of Rs 69,018 crore.
As per the money control report, The promoter group entity Japan’s Sumitomo Wiring Systems is looking to sell its entire 14.15 percent stake or 95,89,55,936 equity shares in Samvardhana Motherson soon, Based on the current market capitalization, the deal might be worth over Rs 10,000 crore.
The Japanese firm has appointed Nomura as the investment banker for the stake sale. Reports suggest that the deal is likely to take place in the price range of Rs 110-120 per share.
In 2022, Motherson Sumi Systems demerged into Samvardhana Motherson and Motherson Sumi Wiring. Sumitomo Wiring Systems holds 14.15 percent in the former and 25 percent in the latter.
In October 2023, Samvardhana Motherson International Ltd announced three acquisitions valued at over Rs 380 crore in the aerospace, health, and medical sectors to strengthen its non-automotive businesses further.
Samvardhana Motherson International Limited (SAMIL) is one of the largest and fastest-growing automotive OEM suppliers in the world. It is a diversified global manufacturing expert and is one of the top 25 global automotive suppliers.
The company has a 24 percent global market share in the manufacture of exterior mirrors for passenger cars, commercial vehicles, and heavy trucks and is a leading specialist in the automotive industry for camera-based sensing systems.
The Group is India’s biggest manufacturer of wire harnesses for passenger automobiles, with a 40% market share.
Samvardhana Motherson International shares have gained 18 percent in the last six months and 34 percent in a year.
According to financials, operational revenue climbed by 24 percent from Rs 18,302 crore in Q2FY23 to Rs 23,474 crore in Q2FY24, while net profit increased by 2 percent from Rs 288 crore to Rs 294 crore over the same time.
The company is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. India’s.
The MSSL group is amongst the world’s largest manufacturers of exterior rear-view mirrors with a dominant market share, and is a leading global player in polymer-based interior and exterior modules.
Written by Omkar Chitnis
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