Minda Corporation jumps after reducing stake in JV company

Minda Corporation rose 7.15% to Rs 140.20 at 14:39 IST on BSE after the company announced restructuring equity stake in joint venture company, Minda Furukawa Electric.

The announcement was made after market hours yesterday, 20 November 2018.

Meanwhile, the S&P BSE Sensex was down 165.28 points, or 0.47% to 35,309.23.

On the BSE, 90,000 shares were traded in the counter so far compared with average daily volumes of 7894 shares in the past two weeks. The stock had hit a high of Rs 145 and a low of Rs 133.65 so far during the day. The stock hit a 52-week high of Rs 229 on 27 December 2017. The stock hit a 52-week low of Rs 106 on 26 October 2018.

Minda Corporation said it has entered into definitive agreements with its joint venture partner, Furukawa Group of Japan, for change in equity structure of Minda Furukawa Electric ("JVCO"). As per the proposed realignment, the equity stake of joint-venture partner in the JVCO will change from 49% to 75% and stake of Minda Corporation will change from existing 51% to 25%. The change in equity structure will be through a mix of sale of shares of JVCO by Minda Corporation and additional equity infusion into JVCO by Furukawa Group of Japan.

The joint venture between Minda Corporation and Furukawa Group, Japan shall continue, with Minda Corporation continuing to hold a significant 25% equity stake.

On a consolidated basis, net profit of Minda Corporation rose 5.99% to Rs 44.58 crore on 18.06% rise in net sales to Rs 773.29 crore in Q2 September 2018 over Q2 September 2017.

Minda Corporation is one of the leading automotive component manufacturing companies in India with a pan-India presence and significant international footprint. The company has a diversified product portfolio that encompasses safety, security & restraint systems; driver information & telematics systems and interior systems for auto OEMs. These products cater to 2/3 wheelers, passenger vehicles, commercial vehicles and after-market.

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