The shares of Samvardhana Motherson rose half a percent in early hours of the trade on Tuesday after 1.6 percent equity of the company changed hands. Tokyo based Sojitz Corporation is likely the seller in the block deal. Earlier, CNBC-TV18 had reported, citing sources, that Sojitz Corporation was looking to sell up to 1.6 percent stake in Samvardhana Motherson.

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The deal is likely to be at a six percent discount to the current price. The transaction size is likely to be $92 million and the floor price of the deal likely to be at Rs 71 per share.

Earlier this week, the company was in the focus after reports suggested that German carmaker Volkswagen Group’s deliveries fell to the lowest in over a decade. Volkswagen Group accounts for around seven percent of the revenue of Samvardhana Motherson.

Brokerage firm Motilal Oswal initiated a ‘buy’ rating on the company's stock. Motilal Oswal recommended investors buy the shares of the auto ancillaries company with a price target of Rs 95 apiece. Motilal Oswal expects good growth across the company’s businesses despite commodity cost deflation.

It said Samvardhana Motherson was well-placed to benefit from easing supply issues. Moreover, the company is a big beneficiary of global mega trends emerging in the automotive industry, the brokerage firm added.

Earlier, ICICI Securities maintained a 'buy' call on the shares of Samvardhana Motherson with a target price of Rs 74. ICICI Securities stated that the company is targeting to treble its revenue to $36 billion in the next 3-4 years through a mix of organic and inorganic growth, with 25 percent of the revenue mix aimed to come from the non-auto segment.

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First Published:Jan 17, 2023 9:36 AM IST