Further paring of stake will remain an overhang for Samvardhana Motherson

Given the Japanese company's remaining stake in SAMIL and 25.34 per cent stake in Motherson Sumi Wiring India, investors will keep an eye on the continued participation of the joint venture partner

The Samvardhana Motherson International (SAMIL) stock fell about 10.87 per cent on Thursday after Sumitomo Wiring Systems (SWS), its co-promoter sold 3.4 per cent stake in the company. The Japanese automotive wiring harness major and its subsidiaries had a 17.72 per cent stake in SAMIL, which will reduce to 14.32 per cent after the transaction.

It was reported on Tuesday that Sumitomo Wiring intended to sell 230 million shares at a floor price of Rs 69.90 a share, which was at a 9 per cent discount to the closing price on Tuesday.

In a release, SWS said the decision to