Motherson Sumi sets January 17 as record date for wiring business demerger

Motherson Sumi has set January 17, 2022 as the record date for the demerger of its wiring business. This is a big positive for the company and for the minority shareholders.

The shareholders will get 1 equity share of Motherson Sumi Wiring India for every share of Motherson Sumi that they hold. This merger process was stuck in the National Company Law Tribunal (NCLT) for very long.

According to IIFL note, the residual business post the demerger will largely be a global business now as only 17 percent of the demerged entity will come from India and the rest will be a global play. IIFL estimated Motherson Sumi’s residual business at 20 times FY23 implying a value of Rs 155 per share.