Minda Corp.'s share price was up by over 5%, with the company looking to acquire a 49% stake in Flash Electronics (India) Pvt. for Rs 1,372 crore. The acquisition is expected to be completed this month.
The flagship company of Spark Minda Group will acquire 2.55 crore shares with a face value of Rs 1, the company said in an exchange filing on Wednesday. In addition, the company said there is no need for any regulatory approval for the acquisition.
"The investment is a strategic partnership and would help unlock synergies across products, customers, technology and manufacturing excellence," the company said on Wednesday.
Flash Electronics is projected to surpass Rs 1,500 crore in revenue for financial year 2025, continuing its strong performance with a compound annual growth rate exceeding 17% in recent years. The company is also anticipated to achieve an Ebitda margin of approximately 14%, along with a consistent return on capital employed of over 22%.
Flash is among the market leaders for motor, motor controllers, vehicle control units, etc. and has developed innovative solutions for electric powertrain. The company will be launching the same for passenger cars and commercial vehicles soon.
"One plus one will be eleven. This partnership fits perfectly, strategically and financially in Minda Corporation's long-term vision of creating value for customers and shareholders,” said Ashok Minda, chairman and Group CEO, Minda Corporation.
Minda Corp. Share Price
Shares of Minda Corp rose as much as 5.53% to Rs 571.90 apiece. It pared gains to trade 4.59% higher at Rs 566.80 apiece, as of 11:19 a.m. This compares to a 0.34%advance in the NSE Nifty 50.
The stock has risen 43.04% in the last 12 months. Total traded volume so far in the day stood at 9.7 times its 30-day average. The relative strength index was at 66.
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 a downside of 2.8%.
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