Shares of Samvardhana Motherson International climbed 5.8 percent on Monday, February 20 after the company informed that its subsidiary- Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has inked a pact to acquire Germany-based SAS Autosystemtechnik GmbH at an enterprise value of 540 million euros (around ₹4,789 crore).
During Monday’s trade, the stock opened at a price of Rs. 81.90 per share closely against the previous close of Rs. 79.55 per share and grew further during the early trading session to touch an intraday high of Rs. 84.20. It was trading at ₹82.20 up by 3.33 percent at 10:50 a.m. on the BSE.
The stock touched a 52-week-high of Rs. 110.73 on February 18, 2022 and a 52-week-low of Rs. 61.80 on October 25, 2022, indicating that at the current level, the stock is trading 33 percent above its 52-week low and 25 percent below its 52 week high.
The stock has increased over 12 percent in the last one month. However, in the past six months, it has declined by nearly 2 percent. Furthermore, the stock has yielded a negative return of almost 21.5 percent in the last one year.
On Sunday, SMRPBV reported through an official filing that the enterprise value of the business is 540 million euros and the transaction will be funded by a mix of debt and internal accruals. The transaction, however, remains subject to information or consultation with employee representatives.
“We have always added new products and technologies to closely serve our customers in a more cohesive way. The acquisition of SAS is an important step in this direction," stated Vivek Chaand Sehgal, chairman of the company.
“This acquisition will transform Motherson Group to be a leading assembler of cockpit modules globally, with a special focus on EV models. We look forward to welcoming over 5,000 new members into the Motherson family," he added.
Last week, the auto components maker reported a consolidated net profit from continuing operations at ₹500.73 crore in the December quarter as compared to ₹225.95 crore in the year-ago period.
Samvardhana Motherson International Limited, formerly Motherson Sumi Systems Limited, is an India-based company engaged in manufacturing components for the automotive and transport industries. Through its subsidiary Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), it is engaged in manufacturing and supplying plastic parts and system modules for vehicle interiors and exteriors.
According to a Mintgenie poll, an average of 19 analysts have a ‘BUY’ call on the stock.