Cummins makes open offer to acquire 26% equity stake in Automotive Axles

11 Oct 2022 , 11:46 AM

Automotive Axles stocks hit 5% upper circuit on Tuesday’s market session after Cummins Inc made an open offer to buy up to 26 percent stake in the company.

The open offer is for the acquisition of 39.29 lakh fully paid-up equity shares at the value of Rs1504.3 per share.

Notably, Cummins Inc owns 35.52 percent stake in  Automotive Axles, due to which a mandatory open offer had to be made.

Meanwhile, BF Investment, the other promoter that holds 35.5 percent equity stake in Automotive Axles, was in focus after Cummins made the open offer announcement.

With this open offer, Cummins Inc will be a co-promoter of Automotive Axles along with the Kalyani group.

At 11:45 AM, Automotive axles were trading at Rs 2,091 per share higher by 4.41 percent from the previous close of Rs2002.75 per share on the BSE.

Meanwhile, Cummins India shares are under pressure and trading at Rs 1217 per share down 0.6 percent against the previous close of Rs1225.20 per share on the BSE.

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