Minda Industries climbs on acquiring Germany's Delvis

Minda Industries rose 1.06% to Rs 338.60 after the company said it acquired Germany's Delvis Gmbh.

Minda Industries (MIL) has entered into definitive agreement with shareholders of Germany based automotive lamps engineering, design company & testing, Delvis Gmbh, to acquire 100% interest in the company. The enterprise value of the company along with its two subsidiaries Delvis Solution and Delvis Products is approximately Euro 21 million, subject to adjustments, if any, at closing.

The transaction, subject to customary closing conditions and other regulatory approvals, is expected to be concluded in next two months. The transaction will be funded by mix of debt and equity. The acquisition is part of the firm's strategy to augment/acquire technological capabilities in existing product lines (automotive lighting).

Delvis is among the top players with state of the art lighting technology and works closely with German OEMs (VW / Audi/ Porche) in pre-development activities for high end platforms, which deploy the next level of technologies. This acquisition is expected to deliver considerable synergies for growth of lamp business in India and enhance its product offerings to OEMs.

Shares of Minda Industries gained 2.45% in two trading sessions to its current market price of Rs 338.60, from a recent closing low of Rs 330.50 on 4 October 2019.

Meanwhile, the S&P BSE Sensex was up 44 points or 0.12% to 37,575.75.

On the BSE, 2,216 shares were traded in the counter so far compared with average daily volumes of 9,180 shares in the past two weeks. The stock hit an intraday high of Rs 347 and an intraday low of Rs 333.65 so far during the day.

The stock hit a 52-week high of Rs 392.45 on 18 April 2019. The stock hit a 52-week low of Rs 256.30 on 11 February 2019.

Minda Industries' consolidated net profit fell 23.7% to Rs 53.48 crore on 0.7% increase in net sales to Rs 1,439.75 crore in Q1 June 2019 compared with Q1 June 2018.

Minda Industries is a supplier of automotive solutions to original equipment manufacturers. The firm offers a range of products across various verticals of auto components, such as switching systems, acoustic systems and alloy wheels.

Powered by Capital Market - Live News