Shares of Samvardhana Motherson International Ltd (SMIL) traded lower on Wednesday, declining by 2.86% to ₹144.46 following the company’s announcement of securing Prysm Systems’ assets via a public auction through its indirect subsidiary, MSSL Consolidated Inc. (MSSL Consol).
Key Developments:
- Foreclosure Process: SMIL has initiated a statutory foreclosure process to secure Prysm Systems’ assets and patented technologies, aiming to achieve full ownership and ensure continuity in developing the Gen 3 prototype.
- Financial Safeguards: To maintain operations during the transition, MSSL Consol will provide interim financing of $3.8 million. The company emphasized that this move aligns with its conservative accounting policies, ensuring no adverse impact on profitability.
- Market Reaction: Investors remain cautious as they await further updates on the auction process, which the company plans to disclose by March 31, 2025.
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