Shares of Minda Corporation Ltd rallied 5% on 15 January after the company announced its plans to acquire a 49% stake in automotive products-maker Flash Electronics for a total consideration of Rs 1,372 crore. 

In its exchange filing, the company said that the Board of Directors has approved its plans to acquire 2.55 crore equity shares of Flash Electronics, which represent a 49% stake in the company. 

The company is expecting this acquisition to be completed before 31 January 2025. 

The acquisition will be done in cash and won’t have any share swap or other related methods. 

The company, in its filing, added, “The investment is a strategic partnership and would help unlock synergies across products, customers, technology and manufacturing excellence.”

Flash Electronics manufactures more than 150 automotive products, which include electric mobility, gears, shafts, sprockets, throttle bodies, exhaust, gas and temperature controls, as well as emissions controls for 2, 3 and 4-wheelers, as per its website. The Delhi-based company, which was founded in 1989, now has 8 manufacturing plants across India, Germany and Hungary and had a consolidated turnover of Rs 1,340 crore in 2023-2024, the exchange filing said.

Minda Corporation is primarily engaged in manufacturing automotive components. The group was founded in 1985 and currently has a presence in Indonesia, Vietnam, Europe, Japan and Uzbekistan.

At 11:23 am, the shares of Minda Corporation were trading 4.84% higher at Rs 568.20 on NSE. 

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