Minda Industries share price soared as much as 16.45 per cent in the morning trade on Friday after the auto components manufacturer announced that it has acquired Spain-based Rinder Group’s global
automotive lighting business for 20 million euros (over Rs 145 crore).
At 10.43 am, the share price of Minda Industries were trading 14.35 per cent up at Rs 964.25. The scrip opened at Rs 910 and has touched a high and low of Rs 982 and Rs 881.25, respectively, in trade so far. Later, the scrip settled 17.97 per cent up at Rs 994.75.
The acquisition includes 100 per cent equity holding in Rinder India, Spain-based Light Systems and Technical Center, along with 50 per cent stake in Rinder Riducu, Colombia. The deal will be financed through internal accruals and the debts.
“This acquisition will give us immense advantage technology wise in lighting solutions and will further augment the R&D Capabilities of the company. With this acquisition the company’s lighting business will have turnover in excess of Rs 700 crore,” Uno Minda Group chairman N K Minda said.
At present in Minda Industries, one of the key product is automotive lighting, which is being manufactured at its plants at Manesar, Pune and north of Delhi, having turnover of around Rs 300 crore per annum. With this acquisition, Minda Industries, lighting business will have turnover in excess of Rs 700 crore which is currently around 300 crore per annum.
The promoters holding in the company stood at 70.89 per cent while institutions and non-institutions held 2.56 per cent and 26.55 per cent, respectively.
In the past one year, the share price of Minda Industries surged 38.69 per cent to Rs 843.25 till March 3, whereas Sensex fell 16.85 per cent during the same period.
For the quarter ended December 2015, the company registered net profit of Rs 28.85, up 122.04 per cent, against Rs 12.99 crore in the corresponding quarter a year ago.
Minda Industries is engaged in the business of manufacturing switches and batteries for 2/3 wheelers and off-road vehicles.
(With inputs from PTI)