Promoter entity Sumitomo Wiring plans to sell 3.4 percent stake in Samvardhana Motherson via a block deal in today’s trading session as per sources.

term sheet of the block deal, in which the floor price is fixed at Rs 69.90 per share

which is almost 9 percent discount to the current market price.

Sumitomo Wiring will sell about 230 million shares in the company in a deal that is valued at $195 million. As per the term sheet, no intention to sell for 180 days from the seller has been committed by Sumitomo Wiring.

JPMorgan India Private Limited is acting as the sole broker to the block deal. This deal is another one in the long list of FDI outflows that secondary market has witnessed in February and March 2023.

Most brokerages though remain positive on the stock with target on the stock falling in the range of Rs 80-120 per share.

The brokerage firm, Motilal Oswal while recommending a buy call on the stock, has said the company is well-placed to benefit from easing supply issues. 

. Moreover, the company is a big beneficiary of global mega trends emerging in the automotive industry.

Motilal Oswal pointed out that Samvardhana Motherson has weathered a storm over the last two-to-three years and now trades at a reasonable valuation

The brokerage firm expected good growth across the company’s businesses despite commodity cost deflation.

ICICI Securities, which too have a buy rating on the stock with a target of Rs 110 per share, says Samvardhana Motherson is targeting to treble its revenue 

revenue to $36 billion in the next 3-4 years through a mix of organic and