Shares of Samvardhan Motherson International Ltd (SAMIL) declined 10.94 per cent. 68.40 on the NSE in Thursday’s intra-day trade after promoter Sumitomo Wiring Systems (SWS) sold 3.4 per cent stake in the company through a block deal for partial debt repayment.
Lowest Price the deal is done 69.9, which is about 9 per cent lower than Wednesday’s closing price. 76.25. The total deal size will be $195 billion.
JP Morgan India Private Limited is acting as the sole broker for the block deal.
SWS sold about 230 million shares of the company in a deal valued at 1,607 crores. With the deal, the company’s stake in Samvardhan Motherson will come down to 14.32 per cent.
Japan-headquartered promoter firm SWS held a stake of around 17.55 per cent. To bet In Promotion Motherson as of December quarter, according to shareholding pattern data.
This is the first stake dilution by promoter SWS in over 40 years.
“Sumitomo Wiring Systems, Ltd., Japan (hereinafter referred to as ‘SWS’), a promoter of Samvardhan Motherson International Limited (hereinafter referred to as ‘SAMIL’) has acquired SAMIL through a ‘Bulk Deal’ on the Stock Exchange. has reported the sale of 3.4% shares held in India, as part of the global deleveraging strategy for partial debt prepayment of SWS Group in an environment of rising interest,” the company said in a filing.
Enrichment is the average goal of the motherson According to Trendline data, the 98 and consensus estimate represents an upside potential of 27.60 percent from its current levels.
Brokerage firms remain positive on SAMIL and target a decline on the stock 80-120 per share. However, Morgan Stanley and Citi are underweight and sell calls on the stock.
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