ICICI Prudential Mutual Fund Increases Stake in Motherson Sumi Wiring India
ICICI Prudential Mutual Fund, India’s well-known third-largest mutual fund company, recently bought more shares of Motherson Sumi Wiring India from the open market. The company’s total stake in the mid-sized auto parts company has now crossed 5% after the purchase.
ICICI Prudential Mutual Fund has bought 19,98,129 shares of Motherson Sumi Wiring India under its different schemes as per the filling by the mutual fund house on February 21. This purchase equals a 0.045% stake in the company.
Due to the prior mentioned acquisition, the fund’s shareholding went beyond 5% of the company’s paid-up capital at a 5.033% stake. Prior to the acquisition of the stake, ICICI Prudential Mutual Fund was in possession of a 4.988% stake in Motherson Sumi Wiring India.
The company said that its investment decision is only for financial purposes and does not have any motive of taking control over the company.
The companies like SBI Mutual Fund, Mirae Asset Managers and UTI Mutual Fund also hold stakes in Motherson Sumi Wiring India.
The stake was bought during the time when Motherson Sumi Wiring India was not performing well. This shows that the fund saw a good opportunity and bought the stake.
In the last month, the company has not performed very well and its share price has dropped by 14%. Over the past three months, it dropped by 22%. According to the reports, the stock has fallen by 32% in the period of the last six months to one year.
The Motherson Sumi Wiring India’s share price decreased by 2% on the BSE at around 2:15 pm, trading at Rs.48.12. The stock reached a high of Rs.49 earlier in the day and a low of Rs.47.85.
In the quarter of October-December 2024, Motherson Sumi Wiring India saw its profit decline by nearly 17% to Rs.140. This was due to higher costs from business expansion. A year ago, during the same period, the company had made Rs.168 crore in profit.
However, the company’s total revenue rose by 9% compared to last year and resulted in Rs.2,300 crore.
