Minda Corp zooms ~8% on as Co announces stake sale in JV

The stock zoomed on reports that the company has entered into definitive agreements with its joint venture partner Furukawa Group for change in the equity structure of Minda Furukawa Electric Pvt Ltd.

Nov 21, 2018 06:11 IST India Infoline News Service

Shares of Minda Corporation zoomed ~8% on Wednesday after the company announced that its has entered into definitive agreements with its joint venture (JV) partner -- Japan's Furukawa Group, for a change in the equity structure of Minda Furukawa Electric Pvt Ltd.

The company's filing with the exchanges said that "as per the proposed realignment, the equity stake of the JV partner will change from 49% to 75% and the stake of Minda Corporation will change from existing 51% to 25%".

Further, the change in the equity structure will be through: (a) a share sale in the JV by Minda Corporation, and (b) additional equity infusion by Furukawa.

The JV between Minda and Furukawa shall continue, with the former continuing to hold a significant 25% equity stake. The said transaction is subject to necessary consents and approvals.

Minda Corporation share price is currently trading at Rs140.80, up Rs9.95, or 7.6%, from its previous close of Rs130.85 on the BSE.
The scrip opened at Rs136.35 and has touched a high and low of Rs145 and Rs133.65, respectively.

Related Story