German auto components supplier ZF Group on Wednesday said it has sold a 7.5% stake in its Indian subsidiary, ZF Commercial Vehicles Control System (CVCS) India.
The company also said that the stake sale will not have any impact on its long-term India strategy or its majority shareholding and control over ZF CVCS.
ZF Group sold 1.4 million shares equalling 7.5% of ZF CVCS, an automotive component and solutions company. ZF CVCS India said the stake sale was to increase liquidity and financial flexibility for its growth plans. “The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market,” it said.
Before this sale, ZF owned a 75% stake in the company through WABCO Asia, with the public holding the remaining 25%.
The ZF CV India stock fell 5.74% to Rs 16,216.55 on the BSE on Wednesday after the stake sale announcement.
On the back of a supportive market environment in India, ZF CVCS India has shown a strong operating and financial performance, the company added.
As part of the group’s global growth and sustainable strategy, ZF opened its 19th plant in India at Oragadam in Tamil Nadu in February for localised production of electrical components for the Indian and Asian markets.
