Auto ancillary maker, Minda Corporation Limited
(MCorp) announced that it will reduce stake in its joint venture (JV) with Furukawa Group of Japan (Furukawa). The JV, called Minda Furukawa Electric Private Limited (MFEPL) is currently owned 51% by MCorp and 49% by Furukawa. Post the restructuring exercise, MCorp will reduce its stake from 51% to 25%, while Furukawa will raise stake from 49% to 75%. The change in equity structure will take place through a mix of sale of shares of MFEPL by MCorp and additional equity infusion into MFEPL by Furukawa.
MCorp has diversified product portfolio comprising of safety, security, restraint systems (45% of Q2FY19 revenues), driver information & telematics (34%) and interior systems (21%). It derives revenues from India (77%), Europe, North America (19%) and South East Asia (4%). As per end market, revenue mix is CVs - 35%, 2/3Ws - 37%, PVs - 18% and aftermarket - 10%. It has 34 manufacturing plants across the globe.
Minda Corporation Ltd ended at Rs130.85 up by Rs1.9 or 1.47% from its previous closing of Rs128.95 on the BSE. The scrip opened at Rs128.25 and touched a high and low of Rs136.20 and Rs127 respectively. A total of 1,43,089 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,973.20cr.