Shares of Samvardhana Motherson International tanked around 14% on Thursday as one of the company’s promoters sold a 3.4% stake.

What Happened: Japan-based Sumitomo Wiring Systems (SWS) sold a 3.4% stake or around 23 crore shares in the company at an average price of around ₹69.9 – around 9% discount from the stock’s Wednesday closing price of ₹76.80. The total sale amounted to over ₹1,600 crore.

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The company in a regulatory filing informed about the sale stating that SWS sold the shares as part of “global deleveraging strategy to fund partial debt prepayment of SWS group in the rising interest environment.”

SWS along with its subsidiary HK Wiring Systems held a 17.72% stake in the auto parts maker which after the stake sale has now dropped to 14.32%. In a press release, SWS said that it will continue to be a promoter of the company and looks forward to continuing its almost four decades-long relationships with Motherson.

Price Action: Shares of Samvardhana Motherson International were down 10.60% to trade at ₹68.66 in the late hours of trading on Thursday.

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