Share of Minda Industries rose 2 per cent to hit an intraday high of Rs 655.30 on BSE after the company announced that it will acquire of 51% stake in automotive lighting manufacture UZ Chasys LLC (UZ Chasys) in Uzbekistan.
"The company has won a bid to acquire of 51% stake in leading automotive lighting manufacture UZ Chasys LLC (UZ Chasys) in Uzbekistan for a purchase consideration of 83.1 billion Kyrgyzstani Soms(equivalent to Rs 58 crore)," Minda Industries said.
"The acquisition will further expand the company's geographical footprints," the company added.
The stock opened 1.24 per cent higher at Rs 650 against the previous close of Rs 642.20. Market cap of the firm rose to Rs 17,708.00 crore.
The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has gained 123 per cent in the last 12 months and risen 63 per cent since the beginning of this year.
Uzbekistan government is moving toward liberalization of the economy and divesting its stake in some of the government-controlled entities.
As part of this process, Uzbekistan Government is divesting its 51% stake in UZ Chasys through the auction process.
UzChasys specializes in the manufacturing of automobile headlights and lamps and is a leading Supplier to OEM's in Uzbekistan and has significant exports.
Uzbekistan automotive market is expected to grow significantly in the coming years along with the introduction of new models which will benefit UZ Chasys.
In March 2021, the company announced that it would invest over Rs 250 crore in expanding its four-wheel lighting and alloy wheel business to meet the increased demand.
The plant is expected to commence operations by the quarter ending March 2022 and will stabilise in a subsequent couple of quarters, it said. The company currently has manufacturing facilities at Pune, Chennai, and Manesar, which are operating at near capacity.
Meanwhile, Indian benchmark indices opened higher on positive global cues. At 09:18 hours, the 30-share BSE index was trading 164.85 points or 0.31 per cent higher at 52,753.56, and the broader NSE Nifty was up 52 points or 0.33 per cent to 15,824.95.
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