Mahindra CIE Automotive to incorporate wholly-owned subsidiary worth Rs10cr; Stock gains 2%

CIE Hosur shall be engaged in the establishment and carrying on the business of manufacturing auto components.

Jul 22, 2021 12:07 IST India Infoline News Service

Mahindra CIE Automotive Limited Board at its meeting on July 21, 2021, has accorded its approval to incorporate a new company as a wholly-owned subsidiary of the Company in the name and style of CIE Hosur Limited or such other name as may be approved by the Registrar of Companies. The company will first pump in Rs10cr in the new entity.

“It is proposed to incorporate the New Entity with Authorised Capital of Rs10cr which can be increased from time to time as per the requirement. The proposed WoS shall be engaged in establishing and carrying on the business of manufacturing auto components by making greenfield investments to leverage the emerging growth opportunities in mobility space. This will also help in ring fencing of business and operational risks,” company said in a filing on Wednesday.

At around 12.20 pm, Mahindra CIE Automotive Ltd was trading at Rs245 per piece up by Rs5.05 or 2.1% from its previous closing of Rs239.95 per piece on the BSE.

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