Shares of Amara Raja Batteries Ltd (ARBL) plunged nearly 7 per cent and were trading close to 52-week low in intra-day trade on Wednesday after the company terminated agreement between Galla Family Johnson Controls (Mauritius) and Johnson Controls Battery Group. As a result of this, the Gala family has taken control of the company.
"Amara Raja Batteries has informed the exchange regarding the termination of shareholders agreement between Galla Family and Johnson Controls (JC) and consequent termination of other agreements entered by the Company with JC," the company said in a statement.Weighed down by the development, shares of auto ancillary company declined as much as 6.66 per cent to hit an intra-day low of Rs 672.10 apiece, close to its 52-week low value of Rs 670.65 touched on December 11, 2018.
According to data available with exchange, as much as 1.87 lakh shares changed hands on the BSE so far as compared to two-week average of 0.40 lakh shares.
In a similar trend, shares of the company were trading 6.05 per cent lower at Rs 677.15 on the National Stock Exchange.
Amara Raja Batteries, the country's leading battery manufacturers, in a filing to exchange said that Johnson Controls International PLC had intended to sell its power solution business in November 2018. Consequently, JC and the Galla Family reached an agreement by which Galla Family would acquire 2 per cent equity shares of the company from JC and terminate the shareholders' agreement with effect from April 01, 2019.
"The company had an ongoing technical assistance agreement entered in the year 1997 and has fully absorbed all critical technologies over the years. Today the company manufactures a wide range of batteries utilizing most advanced product and process technologies to serve the customer requirements across various application segments," ARBL said.
The company added that JC will continue to provide technology assistance to ARBL for an additional period as mutually agreed. As such there is no impact on the company's operation on account of termination of the agreement.
As a progressive organization the company would continue to invest into new technologies and nurture partnerships, it added.
Edited by Chitranjan Kumar