Motherson Sumi shares gain on bagging order from Boeing; demerged entity to list on exchanges on March 28

Shares of Motherson Sumi gained over 3 per cent in Friday's intraday trade after the company said that it has bagged an order to manufacture aftermarket polymer parts. The value of the order, however, was not disclosed by the auto components maker.  

"With this order, Motherson becomes a tier-1 supplier to Boeing. This marks the beginning of a new journey in line with Motherson's vision for growth in aerospace," Motherson CEO (Aerospace division) Kunal Bajaj told PTI. 

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This is the first order for Motherson from Boeing and will commence from the third quarter of FY23. It will be produced at a plant situated in Noida, the company said in a statement. 

On back of the development, shares of Motherson Sumi rose 3% to Rs 139 a share on the BSE. Motherson Sumi has largely traded negative and declined over 30% in the past one year as on March 25.  

At 10.20 am, shares of Motherson Sumi were trading with over 2 per cent to 135.50 per share on the BSE. 

Earlier, Motherson Sumi has announced demerger and created new entity called Motherson Sumi Wiring India Limited from the existing Motherson Sumi Systems Limited. It will be listed on the exchanges on March 28.  

In the demerger, existing shareholders of Motherson Sumi Systems Limited will receive 1 equity share of Rs. 1 /-(Face value) each of Motherson Sumi Wiring India Limited for holding 1 equity shares of Rs.1/- (Face value) share of each Motherson Sumi Systems Limited 

Separate listing of both the automotive and domestic wiring harness businesses is aimed in simplifying the corporate holding structure.