Uno Minda Limited to Acquire 49% Stake in Minda Nabtesco Automotive Pvt Ltd

Uno Minda Limited announced that the Investment and Acquisition Committee of its Board of Directors approved the acquisition of 49% equity shares in Minda Nabtesco Automotive Private Limited from Nabtesco Automotive Corporation, Japan. This decision was made during the Committee’s meeting on September 2, 2024.

Minda Nabtesco Automotive Private Limited is a joint venture between Nabtesco Automotive Corporation and the promoter group entities, Minda Finance Limited and Minda Investments Limited. The company specialises in designing, developing, and manufacturing automotive parts, such as air brake systems, clutch actuation systems, and other components for both passenger and commercial vehicles. These products cater to both original equipment manufacturers (OEMs) and the aftermarket in India and abroad.

Over the past three financial years, Minda Nabtesco Automotive reported a turnover of ₹337.42 million in FY 2023-24, ₹310.12 million in FY 2022-23, and ₹224.19 million in FY 2021-22.

The acquisition will involve the purchase of 49% equity shares from Nabtesco Automotive Corporation. The transaction is structured as an arm’s-length deal and is not classified as a related party transaction. The promoter group currently holds a 51% equity stake in Minda Nabtesco Automotive. Following this acquisition, Uno Minda Limited will own the remaining 49%, making Minda Nabtesco Automotive an associate company of Uno Minda Limited.

The business activities of Minda Nabtesco Automotive align closely with the core operations of Uno Minda Limited, further strengthening its position in the automotive sector. The acquisition is expected to be completed by the quarter ending December 31, 2024, at a cost of ₹1.3 crores (₹130 lakhs). The acquisition will include 2,47,69,500 equity shares, representing the 49% equity shareholding of Minda Nabtesco Automotive Private Limited.

This strategic move is expected to enhance Uno Minda Limited’s capabilities and market presence, further solidifying its role as a key player in the automotive parts industry.

About Uno Minda Limited

Uno Minda Ltd is involved in the manufacturing and supplying of automotive solutions and systems to Original Equipment Manufacturers (OEM).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.