The Board of Minda Industries Limited (MIL) (Flagship company of UNO Minda Group) has approved further investment of Rs 61.2 Crores in Minda Kosei Aluminum Wheels (P) Ltd (Minda Kosei) by way of subscribing to rights issue at face value of Rs 10 per share.
The existing shareholders and Joint venture partner has renounced their rights in favour of MIL enabling the company to increase its stake from 70% to 77.35% in Minda Kosei, a statement said.
Minda Kosei has significant growth opportunities with increasing penetration of 4W Alloy wheel. During last one year, the company had announced expansion at both plants of Minda Kosei i.e. BawaI and Gujrat plants to enhance its total capacity from current 210,000 wheels per month to 330,000 wheels per month by FY 24, according to the company’s statement.
Minda Industries Ltd will invest around Rs Rs 17.49 cr to acquire remaining stake of promoters in four partnership firms namely Samaria Engineering, SM Auto Industries, YA Auto Industries and Auto components, the company mentioned.
This is in line with UNO MINDA Group’s vision and efforts towards consolidation. The Group had initiated consolidation exercise five years back as part of which stakes owned by promoters under UNO Minda group in various entities were transferred to Minda Industries Ltd. While all Group companies were transferred to Minda Industries Ltd in last few years, there were four partnership firms where promoters held some stake along with third party, the statement said.
The company is now consolidating stake in these partnership firm by acquiring remaining stake of promoters effective from 1st Jan 2022, the company adds.
Nirmal K Minda, CMD, Uno Minda Group says, “UNO MINDA Group is focused on consistently enhancing value for its stakeholders. The strengthening of its stake in Minda Kasei and consolidation of partnership firms are steps towards this commitment. Consolidation of group companies/firms over the years has transformed us into a unique cohesive unit with considerable financial strength growing as unified force.”
Sunil Bohra, Group CFO Uno Minda Group says, “Over the years we have noticed a surge in demand for premium products by OE Ms in the Indian market. While penetration of alloy wheel is also increasing however still remains low in comparison to developed countries providing ample growth opportunities. Our additional investment in Minda Kasei will help us further capitalize on this opportunity”
