Samvardhana Motherson International Limited has submitted approval letters received from stock exchange approving reclassification of Sumitomo Wiring Systems Limited & HK Wiring Systems Limited from ''Promoter & Promoter Group'' to ''Public'' category.
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Samvardhana Motherson International Limited has received approvals from both BSE and NSE to reclassify two entities — Sumitomo Wiring Systems Ltd, Japan (9.37%) and HK Wiring Systems Ltd, Hong Kong (0.16%) — from the 'Promoter and Promoter Group' category to the 'Public' category. Together, these two entities hold 9.53% of the company's equity (about 67.04 crore shares). As a result, the promoter group shareholding drops from 58.13% to 48.60%, while the public shareholding rises from 41.87% to 51.40%. The reclassification has taken effect immediately and will be reflected in future shareholding pattern filings.
The promoter group's holding has fallen below the 50% mark, which is a significant structural change. This increases the free-float in the stock and may improve liquidity, but also reduces the controlling stake of the original promoter group. Existing shareholders should note this shift in the ownership structure.