Amara Raja dips 5% on reports of Brookfield re-evaluating investment

Brookfield was re-evaluating its investment plans in the Indian batteries market due to "technological uncertainties".

Shares of Amara Raja Batteries slipped up to 5 per cent to trade at Rs 581 apiece on the BSE on Thursday after reports suggested global asset management company Brookfield was reconsidering its investment in the auto equipment company. The stock of auto ancillary company was trading close to its 52-week low price of Rs 573 touched on June 20, 2019 in intra-day trade.

"Brookfield was actively evaluating its involvement with Amara Raja and was assessing how best it could position Clarios' participation in India," the AMC said in a filing at the US' Securities and Exchange Commission (SEC).

Business channel CNBC-TV18, further reported citing sources, that the company was "re-evaluating its investment plans in the Indian batteries market due to technological uncertainties".

The Canada-based AMC was looking at selling its stake in the battery manufacturer after the company terminated its shareholder agreement with Johnson Controls International Plc, its technology partner since 1997, earlier this year.

Brookfield, which owns 24 per cent stake in the battery maker, got Amara Raja stake in a global deal with Johnson Controls, according to reports. 

At 11:36 am, shares of Amara Raja were ruling 4 per cent lower at Rs 589 apiece. In comparison, the benchmark S&P BSE Sensex was trading 0.77 per cent lower. The trading volumes on the counter more than doubled with a combined 704,346 shares changed hands on the NSE and BSE so far.