WABCO Asia Divests Stake Worth Rs 1,022 Crore In ZF Group Company

WABCO Asia Pvt., promoter of ZF Commercial Vehicle Control Systems India Ltd., divested a 4.3% stake, which equals 8.20 lakh shares, in the auto components maker to institutional investors for Rs 1,022 crore.

ZF Commercial Vehicle Control Systems on Wednesday informed about the development via the stock exchange filings.

Wabco Asia Private sold 4.32% at Rs 12,465.19 apiece, while Aditya Birla Sun Life Mutual Fund bought 1.6 lakh shares at Rs 12,400 apiece, according to NSE bulk deal data.

The move will increase liquidity and financial flexibility for ZF Group’s growth plans, it said, adding that the group “continues to hold a solid majority in the company.”

“The sale of shares has no effect on ZF’s control of ZF CVCS India, as it is the long-term strategy of ZF to maintain its solid majority shareholding in the entity,” the company’s press release stated.

It said that the move will allow the group to invest in its growth and in the dynamically developing Indian market.

The company reiterated that its auto component unit is the market leader in the Indian CV supplier industry and it “remains a very important pillar in ZF’s global growth strategy.”.

Also, on the back of a supportive market environment in India, the company has shown a strong operating and financial performance.

The company supplies advanced mobility products and systems for passenger cars, commercial vehicles, and industrial technology.

In India, it supplies technology solutions and services that shape mobility trends in the country.

The group has been operating on the subcontinent for over six decades with 18 manufacturing facilities, 10 engineering centres, and over 16,000 employees.

Shares of ZF Commercial Vehicle Control Systems India Ltd. closed 13.74% lower at Rs 12,426 apiece on the BSE, compared to a 0.29% advance in the benchmark Sensex.