Minda Corp rises 5% after acquiring 49% stake in Flash Electronics

Minda Corporation share price gained 5.53 per cent at Rs 571.80 a piece on the BSE in Wednesday’s intraday trade. This came after the company acquired a 49 per cent stake in Flash Electronics for Rs 1,372 crore. 

 

“We wish to inform you that the Board of Directors of Minda Corporation have agreed to acquire 2,55,40,578 equity shares with face value of Rs 1 each of Flash Electronics (India) representing 49 per cent of the total issued and paid-up equity share capital,” the company said in an exchange filing on Wednesday.

 

The company will acquire the shares at Rs 537.18 per equity share aggregating to Rs 1,372 crores.

 

“This collaboration aims to bolster both organisations' positions in the automotive industry by leveraging each other's strengths and driving future growth by unlocking synergies across products, technology and customers,” Minda Corporation stated.

 

New Delhi based, Flash Electronics is engaged in the business of manufacturing and selling automotive products across the spectrum of Electrical and Electronics, Electric Mobility, Gears, Shafts, Transmission Assembly, Throttle Bodies for Two, Three & Four wheelers. 

 

FLASH has 8 manufacturing plants across India, Germany & Hungary and is driven by a strong team of 2500+ individuals. The total consolidated turnover of FLASH as per last audited financial statements for the year ended on March 31, 2024 is Rs 1,340.02 crores.

 

Flash Electronics is expected to achieve revenue over Rs1500 Crores in FY25 and have been impressively delivering a CAGR of over 17 per cent during past years, Minda Corporation said in a statement. 

 

Moreover, the acquired company is expected to deliver an Ebitda margin of around 14 per cent and with a steady ROCE of over 22 per cent. 

 

Minda Corporation has a total market capitalisation of Rs 13,561.78 crore. Its shares are listed at a price to earnings multiple of 61.59 and at an earning per share of 9.21.

 

At 11:37 AM, the stock price of the company rose by 4.69 per cent at Rs 567.20  a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 76,712.85  level.

 

Minda Corporation is an automotive component manufacturing company. It is the flagship company of Spark Minda, which was part of the erstwhile Minda Group. The Company has a diversified product portfolio that encompasses Mechatronics; Information and Connected Systems and Plastic and Interior for auto OEMs.