Motherson Sumi Systems Ltd (MSSL) is not having a good day. The stock, which had closed yesterday at Rs.103.65, opened lower at Rs.100.70 and went down to Rs.94.30, not too far from its 10% LC of the day at Rs.93.30.

The market is not happy with the company’s restructuring plan. Yesterday, it announced a major such exercise wherein its domestic wiring business (DWH) is to be demerged into a new company, which will then be listed.

For every share held in Motherson Sumi, one share would be allotted in this new firm.

The promoter company, Samvardhana Motherson International Limited (SAMIL) is to be merged into MSSL, consolidating the group's automotive interests under the listed entity.

For every 10 shares held in SAMIL, 51 shares of MSSL would be allotted and it will be renamed as 'Samvardhana Motherson International'.

The minority shareholders would continue to own 38% in DWH but their Motherson Sumi (ex-DWH) stake would fall to 27% of a larger company.

As per our Editor, Mr. SP Tulsian, this is a good move and the market is not able to recognsie this now.