Samvardhana Motherson share price: The company announced it would acquire an 81 per cent stake in the four-wheeler business of Yachiyo Industry, a Honda Motor subsidiary.
Samvardhana Motherson share price: Shares of Samvardhana Motherson International jumped as much as 8.69 per cent to hit a 52-week high of Rs 92.50 apiece on the BSE in the early morning trade on Wednesday, a day after the company announced it would acquire an 81 per cent stake in the four-wheeler business of Yachiyo Industry, a Honda Motor subsidiary.
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At the time of writing this report, the stock traded over 8 per cent higher at Rs 92.04 on the BSE. In comparison, the S&P BSE Sensex was trading at 65,444.81 levels, down 34 points, or 0.05 per cent.
The company has entered into a partnership with Honda Motor under which it will form an 81:19 strategic partnership with the latter, where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies, Samvardhana Motherson International Ltd. (SMIL) said in a statement.
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Yachiyo Industry Co., Ltd. is a publicly listed firm on the Tokyo Stock Exchange. It is a subsidiary of Honda Motor Co Ltd. It has four-wheeler (4W) and two-wheeler (2W) businesses.
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Reacting to the development, global brokerage firm Nomura has double-upgraded the stock to BUY from Neutral and raised the target price to Rs 105 from Rs 90 earlier. The brokerage notes that the acquisition is at an attractive valuation.
