Bosch shares outperform markets with 4% gain on strategic acquisition news

Automotive supplier Bosch was outperforming in an otherwise weak market on Thursday after the company announced the acquisition of Bosch Chassis Systems India Private Limited through a cash deal and the issuance of equity shares on a preferential basis.

 

Following the update, Bosch’s share price climbed 3.77 per cent to log an intraday high of ₹37,290 per share on the NSE during intraday deals on Thursday, April 9. The counter, however, trimmed gains slightly but continued to see steady buying interest. At 11:30 AM, Bosch shares were quoted at ₹37,105 apiece, up 3.26 per cent from the previous close of ₹35,935 on the NSE. In contrast, the benchmark NSE Nifty50 was trading lower by 165 points or 0.69 per cent at 23,832 levels. The company’s market capitalisation stood at ₹1,09,465.64 crore on the NSE.

 

Acquisition of Bosch Chassis Systems India 

Bosch has informed the exchnages that its board has approved the acquisition of Bosch Chassis Systems India Private Limited (RBIC) from existing shareholders Robert Bosch Investment Nederland B.V. (RBNI), Netherlands, and Robert Bosch LLC, USA, for a cash and non-cash consideration not exceeding ₹9,068.68 crore for a 100 per cent stake, as per the Share Purchase Agreement executed among the parties.

 

Upon acquisition, RBIC will become a wholly owned and material subsidiary of Bosch Limited, in line with Regulation 16(c) of SEBI (Listing Obligations and Disclosure Requirements).

 

“This development positions Bosch Limited with a more comprehensive mobility portfolio, enabling it to better cater to the evolving demands of India’s automotive sector. The transaction will strengthen Bosch Limited’s capabilities, enabling it to further invest in critical domains like safety and braking, in addition to its strong footprint in power solutions,” said the company.  Commenting on the development, Guruprasad Mudlapur, president of the Bosch Group in India and managing director of Bosch, said, "Adding Bosch Chassis Systems India Private Limited, with a future-fit vehicle motion solutions business, demonstrates our organisational belief in enhancing the company’s growth trajectory through portfolio diversification. This transaction further solidifies our leadership presence within mobility, enabling us to leverage our strengths and deliver solutions backed by local research and development and local manufacturing.

 

The company also announced the proposed issue of 1,230 equity shares, each with a face value of ₹10, at a price of ₹35,200 (including a premium of ₹35,190) on a preferential basis for consideration other than cash to RBNI and Robert Bosch LLC (both categorised as promoter group). This is subject to regulatory and statutory approvals, as well as the approval of the company’s shareholders. 

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Motial Oswal retains 'Neutral' on Bosch

Analysts at Motilal Oswal Financial Services (MOFSL) have retained their ‘Neutral’ rating on the stock. According to MOFSL analysts Aniket Mhatre, Jeemit Shah, and Uday Nair, the acquisition deal is attractively priced for minority shareholders compared to the listed entity, which is trading at 40.6x FY26E EV/Ebitda.

 

The company expects the acquisition to lead to a 5 per cent EPS accretion on an FY25 basis. The move will enable Bosch to transition from selling individual mechanical components to offering a broader range of solutions to OEMs, significantly strengthening its competitive advantage and creating long-term shareholder value.

 

“We have incorporated RBIC into our estimates from FY27E, which leads to a 5 per cent/7 per cent earnings upgrade for FY27E/FY28E. While this acquisition favours minority shareholders, the stock has already rallied almost 19 per cent in the last three trading sessions and now appears fairly valued at 40x/35.7x FY27E/FY28E EPS,” the analysts wrote in their research report.

 

MOFSL has revised the target price to ₹35,323 per share, based on 36x Dec’27E EPS. However, the stock has already surpassed this assigned target price.  ====================================== 

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