Auto parts maker Samvardhana Motherson shares hit 52-week high

Shares of auto components maker Samvardhana Motherson International Ltd (SMIL) on Wednesday jumped 10% after the company said it will acquire 81% stake in the four-wheeler business of Yachiyo Industry, a Honda Motor subsidiary. The stock rallied 8.69 per cent to hit its 52-week high of Rs 92.50 on the BSE.

At the NSE, it jumped 9.98 per cent to Rs 93.65 -- its 52-week high level.

The company has entered into a partnership with Honda Motor under which it will form a 81:19 strategic partnership with the latter where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies, SMIL said in a statement.

Yachiyo Industry Co Ltd is a publicly listed firm on the Tokyo Stock Exchange. It is a subsidiary of Honda Motor Co Ltd. It has four-wheeler (4W) and two-wheeler (2W) businesses.

"As a part of the overall transaction, the 2W business will be transferred to Honda Motor before Motherson acquires 81 per cent stake in Yachiyo's 4W business," the statement said.