365telugu.com online news,Gurugram,February 14th,2022: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.
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. Bawal and Gujrat plants to enhance its total capacity from current 210,000 wheels per month to 330,000 wheels per month by FY 24. Consolidation of Partnership Firms
Minda Industries Ltd will invest around Rs Rs 17.49 cr to acquire remaining stake of promoters in four partnership firms namely Samaria Engineering, S M Auto Industries, YA Auto Industries and Auto components.
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 company is now consolidating stake in these partnership firm by acquiring remaining stake of promoters effective from 1st Jan 2022. The existing and revised stake after additional investment is in these partnership firms will be as follows.Existing MIL Stake MIL Stake after additional investment
YA Auto Industries 51.00% 87.50%
Auto Components 48.90% 95.00%
Samaira Engineering 0.00% 87.50%
S.M. Auto Industries 0.00% 87.50%
The move will further simplify the holding structure and improve transparency with significant reduction of related party transactions.
This concludes the company’s consolidation exercise with all group companies with all auto components business now have been brought under listed entity, barring the JV with Nabtesco which the Group is planning to exit in near future.