Shares of Samvardhana Motherson International crashed nine percent on March 16 after large block deals took place on the bourses.
Around 23.2 crore shares or 3.7 percent equity, changed hands in multiple block deals.
The buyer and seller could not be immediately ascertained by Moneycontrol. At 9:17 am, shares of the company were trading 8.7 percent lower at Rs 70.13 on the BSE.
Sumitomo Wiring Systems was expected to sell a 3.4 percent stake in the company by way of a block deal. The floor price of the deal was to be Rs 69.9 per share, CNBC TV-18 reported on March 15, citing sources. This will mark a discount of about nine percent as against the previous close of Rs 76.80. The overall deal size will be $195 billion.
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The Japan-headquartered Sumitomo Wiring Systems is one of the major investors in Samvardhana Motherson, holding a 17.55-percent stake in the company as of December 31, 2022.
The company has a strong order book with cumulative revenue visibility of around EUR 3 billion for the next three years, said Emkay Global Financial Services.
It expects Samvardhana Motherson’s net debt to increase post-acquisition of SAS Autosystemtechnik GmbH, from Rs 8400 crore in December 2022 to Rs 9800 crore in FY24. The brokerage firm believes the company will register a healthy operating cash flow of Rs 6300 crore every year over FY23-25, to support debt reduction going ahead.