Promoter entity valuation in restructured entity weighs on Motherson

The stock of Motherson Sumi slipped 5.34 per cent on Friday on concerns that the promoter-controlled international operations were given higher valuations as part of the restructuring exercise. While domestic wiring harness business will be demerged and listed separately, all other businesses (unlisted) will be merged into the current listed entity.  The proposal to have two entities was based on the request of joint venture partner Sumitomo, which wants an exposure only to the India wiring harness business. The other objective was to simplify the group holding structure and bring a.....

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