- By Aditya Pratap Singh
- Thu, 28 Nov 2024 09:19 AM (IST)
- Source:JND
German auto component supplier ZF Group sold a 4.32 per cent stake in its Indian subsidiary ZF Commercial Vehicles Control Systems (CVCS) India for Rs 1,022 crore, according to exchange data. Wabco Asia Pvt Ltd, part of and promoter of ZF Group, sold a 4.3 per cent stake or 8.2 lakh company shares, according to bulk deal data on NSE.
The shares were sold at an average price of Rs 12,465.19 per share, taking the transaction value to Rs 1,022.14 crore. Meanwhile, Aditya Birla Sun Life Mutual Fund bought 1.60 lakh shares of ZF CVCS India at an average price of Rs 12,400 per share, taking the deal value to Rs 199.24 crore.
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Wabco Asia's stake in ZF CVCS India has come down to 63.17 per cent from 67.49 per cent.
In a filing to the stock exchanges, ZF Group said it has sold a 4.32 per cent stake in the Indian arm to enhance financial flexibility for its growth. The company said the sale of shares will not have any impact on ZF's control over ZF CVCS India, as it is ZF's long-term strategy to maintain its solid majority stake in the entity.
"The world's 3rd largest automotive supplier has sold 8,20,000 shares, equalling 4.3 per cent stake, in its listed Indian subsidiary, ZF CVCS India, to increase liquidity and financial flexibility for its growth plans," it stated.
This transaction will strengthen ZF's financial flexibility, allowing it to invest in its further growth and the dynamically developing Indian market. ZF CVCS India is the market leader in the Indian CV supplier industry and remains a very important pillar in ZF's global growth strategy, the company said. The Friedrichshafen (Germany)-headquartered firm launched the commercial vehicle control systems business in January 2022 after the acquisition of WABCO in 2020.
