Japan's Sumitomo Wiring Systems looks to exit Samvardhana Motherson: Sources
Sumitomo Wiring Systems from Japan is planning a complete exit from Samvardhana Motherson, according to a Moneycontrol report.
Sumitomo Wiring Systems from Japan is planning a complete exit from Samvardhana Motherson, according to a Moneycontrol report. The firm intends to divest its entire 14.1% stake in the company, valued at over ₹10,000 crore at the current market price, it added.
The proposed selling price for their stake is around ₹110-120 per share. CNBC-TV18 sought to get a response from the management, but they declined to comment.
If this exit materialises, it will alleviate a long-known concern for the company. Sumitomo's intention to divest from Samvardhana Motherson has been evident, and removing this overhang could have positive implications.
Notably, Sumitomo will maintain its investment in Motherson Wiring, holding approximately 25% stake there. Once this block is absorbed, the lingering overhang on the stock will be resolved.
The current dip in the stock is attributed to potential supply pressure or the anticipation thereof. However, the removal of this overhang could be a favourable development for the company once realised.
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(Edited by : Ajay Vaishnav)
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