The stock fell by 22 per cent to Rs 182.65 per share on the index on the NSE from its previous closing price of Rs 234.80 per share.
As per arrangement, Motherson Sumi Systems will see the demerger in and with the MSWIL (“Demerger”) of the Company’s Domestic Wiring Harness Undertaking. The entity to be separated will be called Motherson Sumi Wiring India (MSWIL).
Shares of Motherson Sumi Systems fell nearly 9 per cent to Rs 182.30 per share on the BSE on Friday, ahead of the record date of demerger of the company’s wiring harness unit. On the NSE, the stock fell 22 percent to Rs 182.65 per share on the index from its previous closing price of Rs 234.80 per share.
Earlier on January 4, 2022, the auto parts and manufacturer had fixed January 17, 2022 as the record date for the purpose of determining the shareholders of the company.
“The Directors of the Company, in their meeting held on Tuesday, January 4, 2022, have, as planned, set the Record Date 1 on Monday, January 17, 2022 for the purpose of fully disbursing the shareholders of the Company. Motherson Sumi Wiring India Limited’s paid-up equity shares will be issued and allotted in consideration of demerger in and with Motherson Sumi Wiring India Limited of Domestic Wiring Harness Undertaking,” read a regulatory filing dated January 4, 2022.
The filing further said that the equity shareholders of the company whose names are recorded in the register of members and records of depositories as members of the company till January 17, 2022, the record date fixed by the board of directors of the company, will be issued and 1 (one) equity share of Rs. 1 (Indian Rupee One) each of Motherson Sumi Wiring India Limited for 1 (One) equity share of Rs. 1 (Indian Rupee One) each company.
The sharp fall in Motherson Sumi Systems stock, apparently on account of the demerger exercise, has left investors puzzled.
At 12.10 pm, shares of Motherson Sumi Systems were trading at Rs 187.50, down 6 per cent or Rs 12.50 per share, on the BSE.