Latest News | Sumitomo Wiring Systems Sells 4.4 Pc Stake in Samvardhana Motherson for Rs 3,633 Cr

New Delhi, Mar 6 (PTI) Japan's Sumitomo Wiring Systems on Wednesday divested a 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 promoter entities in Samvardhana Motherson International Ltd (SAMIL).

Also Read | Gender Disparity: Only 1.6% of Companies Listed in Fortune India 500 Led by Women, Study Shows.

According to the bulk deal data available with the National Stock Exchange (NSE), Sumitomo Wiring Systems sold a total of 30 crore shares, amounting to a 4.43 per cent stake in SAMIL.

The shares were offloaded within the price range of Rs 121.03-121.25 apiece, taking the combined deal value to Rs 3,633.20 crore.

Also Read | BPSC Recruitment 2024: Vacancies Notified For Over 46,000 Posts on bpsc.bih.nic.in, Know How to Apply.

After the stake sale, the shareholding of SWS has declined to 9.72 per cent from 14.15 per cent in the company.

The combined shareholding of the promoters and promoter group entities has declined to 60.35 per cent stake in Samvardhana Motherson International from 64.78 per cent.

As of December 2023, SWS and its wholly-owned subsidiary HK Wiring Systems Ltd (HKWS) jointly held a 14.32 per cent stake in the automotive component supplier.

Details of the buyers of SAMIL's shares could not be ascertained.

On Wednesday, shares of Samvardhana Motherson International fell 3.83 per cent to close at Rs 120.65 apiece on the NSE.

In March 2023, Sumitomo Wiring Systems offloaded a 3.4 per cent stake in Samvardhana Motherson International for Rs 1,612 crore.

SWS was the first joint venture partner of Motherson and promoter of SAMIL since its Initial Public Offering (IPO) in 1993.

Under a restructuring exercise announced in 2020, auto components major Motherson Group had demerged the Domestic Wiring Harness (DWH) of the then Motherson Sumi Systems Ltd (MSSL) into a new listed company, Motherson Sumi Wiring India Ltd.

It was done to accomplish the long-standing request from the company's joint venture partner, Sumitomo Wiring Systems (SWS), which wanted to keep its participation focused on DWH business in India, which is its core area of interest.

As part of the restructuring after the demerger of DWH, all the auto components and allied businesses were brought under the group firm, Samvardhana Motherson International Ltd.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)