Minda Corp share price rose by 5.5% during Wednesday’s trading session following the announcement of its plan to acquire a 49% stake in Flash Electronics, a manufacturer of automotive products. The deal will cost Minda Corp ₹1,372 crore. Minda Corp share price today opened at ₹547.95 apiece on BSE, the stock touched an intraday high of ₹571.80 per share, and an intraday low of ₹547 apiece.
In an exchange filing, Minda Corp stated that its board has approved the acquisition of 2.55 crore equity shares of Flash Electronics, representing 49% of the company’s total equity. Minda Corp also mentioned that it anticipates the acquisition to be finalised by January 31, 2025, at the latest. The entire transaction will be conducted in cash, without any share swaps or similar arrangements.
The partnership intends to strengthen both companies’ positions in the automotive sector by utilising their respective strengths and propelling future expansion by enabling synergies across customers, technology, and products, the business said in an exchange filing.
“This partnership fits perfectly, Strategically and Financially in Minda Corporation’s long-term vision of creating value for customers and shareholders,” added Ashok Minda, Chairman & Group CEO, Minda Corporation.
With eight cutting-edge production facilities worldwide and three specialised research and development facilities, Flash Electronics designs, develops, and produces a broad range of high-performance automotive components, such as motors, motor controllers, magnetos, regulators, and sensors.
On the other side, Minda Corporation offers a wide range of products, including mechatronics, information and connected systems, as well as plastics and interiors for auto OEMs. These products cater to off-road vehicles, passenger cars, commercial trucks, two- and three-wheelers, and aftermarket clients. The company has a varied customer base that includes Tier-1 clients and original equipment manufacturers from both India and abroad.
Q2 Results
Minda Corporation announced a 25.42% increase in consolidated Profit After Tax (PAT), reaching ₹74 crore for the quarter ending September 30, 2024, fueled by a growing customer base and enhanced product offerings. The company reported a PAT of ₹59 crore during the same period in FY24, according to the statement from Minda Corporation.
Consolidated revenue for the reviewed quarter was ₹1,290 crore, up from ₹1,196 crore in the same quarter last year, representing a year-on-year increase of 7.9%, according to the company. The company reported its highest-ever quarterly EBITDA (earnings before income, taxes, depreciation, and amortisation) at ₹147 crore with an 11.4% margin, indicating a rise of 38 basis points compared to the previous year.
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