Sumitomo Wiring to sell 30 crore shares in Samvardhana Motherson via block deal: Reports

Shares of Samvardhana Motherson International Ltd will be in focus on Wednesday, as a promoter entity Sumitomo Wiring Systems is reportedly looking to sell 4.5 per cent stake of the company through a block deal, suggested media reports. Business Today could not independently verify the report.

The floor price for the issue is reported to be around Rs 118-122 apiece, which is about 2.5-6.5 per cent discount to he prevailing price. The promoter firm may sell about 30 crore shares of the company via block deal.

Shares of Samvardhana Motherson rose 5 per cent to Rs 125.25 on BSE on Tuesday. It commanded a market capitalisation of about Rs 85,000 crore. The stock has more than doubled from its 52-week low level at Rs 61.84 hit on March 28, 2023.

According to media reports, the deal size is likely to be $427 million (about Rs 3,500 crore). JP Morgan and ICICI Securities are said to be the broker for the deal, the report added.

According to the data from December 31, 2023, Sumitomo Wiring Systems owned 95,89,55,936 equity shares, or 14.15 per cent stake, in the company. Post this transaction, Sumitomo Wiring will have a lock-up for 270 days before the next sale.

In the quarter ended December 31, 2023, Samvardhana Motherson reported a consolidated net profit of Rs 633.3 crore, marking an on-year growth of 26.5 per cent. The auto components maker's revenue from operations came in at Rs 25,697.6 crore in the December quarter, up 26.8 per cent as against the corresponding period of the previous financial year.