Minda Corp Board Approves Proposal To Raise Rs 1,000 Crore

Minda Corp. announced on Thursday that the company will raise up to Rs 1,000 crore in fresh funding. The company's board approved the proposal to raise funds through qualified institutional placement or a preferential issue of shares or any combination thereof on Sept. 12, according to an exchange filing.

The fundraise is subject to approval of the company’s shareholders and receipt of applicable regulatory approvals.

The auto components manufacturer has not yet disclosed how it plans to utilise the fund it aims to raise.

Earlier on Sept. 4, the company signed a technology licencing agreement with China's Sanco Connecting Technology to offer electrical distribution systems solutions for the electric vehicles market.

Shares of Minda Corp. were trading 1.31% higher at Rs 538.00 per share, compared to a 0.28% rise in the NSE Nifty 50 as of 1:36 p.m.

The stock gained 61.15% in 12 months, and 38.77% year-to-date. The relative strength index was at 56, which implied the stock was overbought.

Out of seven analysts tracking the company, five maintain a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 2.3%.