Shares of Samvardhana Motherson International Ltd slumped over 12% on Thursday after nearly 5% equity changed hands.
Media reports earlier said that one of the major investors, Sumitomo Wiring Systems, was to sell 3.4% stake or 230 million shares in the company via a block deal today.
As per the reports, the total transaction value was estimated to be around ₹1,600 crore, with the floor price for the sale being around ₹69.90 per share i.e. a discount of 9% to last closing price.
According to data on shareholding patterns, Sumitomo Wiring Systems owned about 17.55% stake in the company as of the quarter ended December.
In addition, despite sound financials and well-timed acquisitions revealed recently by the company, ICICI Securities warned in a note that the stock may underperform in the near to medium term.
The stock has fallen 29.66% from the 52-week high of ₹97.5.
The stock is currently trading 10.81% lower at ₹68.50 per share on the BSE.
The stock price fell 22.4% and underperformed its sector by 46.2% in the past year. The stock's weekly average delivery volume is 50.55%.
According to MintGenie poll, 19 analysts on an average recommend 'buy' rating for the stock.
