Mahindra CIE invests Rs 2.42 cr in Strongsun Solar

The automotive component supplier on Monday said that it has subscribed to 3,03,250 equity shares of of Strongsun Solar at Rs 80 per share.

Post allotment, Mahindra CIE Automotive will hold 27.35% of the post issue paid-up capital of Strongsun. The shares will be allotted on or before 5th January, 2023. The total investment in Strongsun is expected to be completed by April, 2023.

"The Company today i.e., 12th December, 2022 has invested INR 24.26 Million towards subscription of 3,03,250 equity shares of INR 10/- each of Strongsun Solar Private Limited (Strongsun") which will constitute 27.35% of the post-issue paid-up capital of Strongsun," said the company in its corporate filing.

Strongsun is setting up two captive generating plants of the capacity of 7 MWp and 3 MWp to supply captive solar power from these plants to Mahindra CIE Automotive foundry division at urse (7 MWp) and magnetics products division at Bhosari (3 MWp) respectively.

"In order to qualify as a captive consumer, the Company must hold atleast 26% of the total equity capital of the Power Generating Plant(s)," the company added in its corporate filing.

Mahindra CIE Automotive's scrip ended 0.49% up at Rs 286.60 on BSE.

Mahindra CIE Automotive is a multi-technology automotive components supplier. It is a subsidiary of the CIE Automotive group of Spain; an industrial group specialised in supplying components and sub-assemblies for the automotive market, which has presence across the globe.

The company reported 3% rise in consolidated net profit to Rs 171.37 crore on 30.3% rise in revenue from operations to Rs 2,723.15 crore in Q3 calender year (CY) 2022 over Q3 CY 2021.

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