ZF Group on Wednesday said it sold 4.3% of its holding in ZF Commercial Vehicle Control Systems India (ZF CVCS India) for Rs 1,387 crore. The ZF CVS India stock fell to Rs 12,426 crore, 13.74% down at close, on the BSE after the company sold 820,000 shares to institutional investors.
The company said the equity sale would increase ZF Group’s flexibility for growth and liquidity. The ZF Group (ZF) continues to hold a solid majority in ZF CVCS India and the sale of shares does not affect 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. “ZF CVCS India is the market leader in the Indian CV supplier industry and remains a very important pillar in ZF’s global growth strategy,” it said. The transaction will allow it to invest in its further growth in the developing Indian market, ZF said.
The company had sold a 7.5% stake (14,25,000 shares) of its holding in ZF CVS India in June 2024, stating it would not have any impact on its long-term India strategy or its majority shareholding and control over ZF CVCS. The stake sale was for a similar reason — to increase liquidity and financial flexibility for its growth plans. Before this sale in June, ZF owned a 75% stake in the company through WABCO Asia, with the public holding the remaining 25%. The ZF CV India stock had then seen a 5.74% to Rs 16,216.55 after the 7.5% stake sale announcement.
ZF acquired WABCO in 2020 and integrated it into the ZF CV Division Globally. WABCO was renamed as ZF Commercial Vehicle Control System in India. It now has six plants and four global engineering and tech centres in India. It supplies to all leading CV OEMs, including, Tata Motors, Ashok Leyland, Eicher, Daimler, and Mahindra. In the off-highway segment, it supplies TAFE, Caterpillar, Escort, and BEML to BMW and Audi in the car segment. The company supplies braking, transmission, suspension, steering, air management systems, ADAS, and connected systems.
