homeauto NewsSamvardhana Motherson shares rise with large volumes — here's why

Samvardhana Motherson shares rise with large volumes — here's why

Samvardhana Motherson International share price: The stock of the auto parts maker rose with large volumes on Friday. Here's what's powering the gain.

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By CNBCTV18.com Sept 9, 2022 5:54:37 PM IST (Updated)

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Samvardhana Motherson shares rise with large volumes — here's why

Samvardhana Motherson International shares rose more than two percent with large volumes on Friday, after the auto parts manufacturer announced the acquisition of Daimler India Commercial Vehicles' frame manufacturing and assembly operations facilities in Chennai. The Samvardhana Motherson stock gained by as much as Rs 2.7 to Rs 125.9 apiece on BSE, before settling at Rs 123.8 apiece for the day.
A total of 6.6 lakh Samvardhana Motherson shares changed hands on the bourse during the day, as against a daily average of 4.3 lakh in the past two weeks, according to exchange data.
Samvardhana Motherson International, formerly known as Motherson Sumi Systems, said in a regulatory filing on Thursday that it had signed a strategic agreement including a long-term deal with Daimler India CV for the supply of the complete frame assembly.
SAMIL, through a wholly-owned arm, runs the manufacturing operations of the frame manufacturing facility of DICV but the frame assembly operations are managed by DICV itself in a separate facility, according to the filing.
"Once the transaction is completed, SAMIL will own the assets, including long-term leasehold rights for land, and will run end-to-end operations for frame manufacturing and assembly and supply to DICV under the long-term supply contract," it said.
It also said the transaction is expected to close in the quarter ending December 2022, subject to customary closing conditions and necessary regulatory approvals.
Samvardhana Motherson shares have risen about two percent in the past one month, largely in line with the return in the Nifty50 benchmark.

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