Shares of Motherson Sumi Systems limited dashed down to 19.55 per cent at Rs 188.90 apiece (−45.90) on January 14, 2022, at 1:31 pm IST on the National Stock Exchange (NSE) before the record date for demerging its domestic wire harness business. The trading volume at the counter hopped over five-fold terms with an incorporated value of 25.8 million equity shares switching hands on the NSE and BSE.
Motherson Sumi Systems Limited has fixed a Record Date of January 17, 2022, for issuance and allocation of 1 equity share of Motherson Sumi Wiring India Limited for every 1 equity share to shareholders of Motherson Sumi Systems Limited.
For clients holding F&O contracts expiring on January 27, February 24, and March 31, these contracts are suspected to lapse on January 13, 2022, and would be liable to be physically settled if not closed before market hours on January 13.
In the demerger, existing shareholders of Motherson Sumi Systems Limited will acquire 1 equity share of Rs. 1 /-(Face value) each of Motherson Sumi Wiring India Limited for holding 1 equity share of Rs.1/- (Face value) share of each Motherson Sumi Systems Limited. The date of credit shares will be communicated to the Registrar of the company. The closing price of Motherson Sumi Systems Limited was Rs 251.7 up nearly 4.87% on Tuesday. The stock is up from Rs 151 in July 2021.
The auto ancillaries major declared to demerger the element from its existing entity and list it separately by March, under the name Motherson Sumi Wiring India with intend to unclose value from the wiring tackle business. The existing company will merge into Samvardhana Motherson International (SAMIL), the company held by the promoter.
This will stimulate simplifying the group structure and creating a strong growth platform. ETIG pegs the fair value of SAMIL at Rs 170-230/share, while that of the demerged business at Rs 60-80 apiece.