German auto component supplier ZF Group announced on Wednesday the sale of a 7.5% stake in its Indian subsidiary, ZF Commercial Vehicles Control System India.
The divestment of 14,25,000 shares aims to boost liquidity and financial flexibility for future growth initiatives, according to an exchange filing.
The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market, the company said.
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 a solid majority shareholding in the entity, according to the filing.
Germany-based ZF Group launched its commercial vehicle control system business in January 2022 after acquiring WABCO in 2020.
(With inputs from PTI)
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