Minda Corporation said the joint venture between the company and Furukawa Group, Japan will continue with company continuing to hold a significant 25 percent equity stake.
Minda Corporation shares rallied 10.8 percent intraday Wednesday after the company reduced its stake in joint venture by selling to Japanese partner.
The company has entered into definitive agreements with its joint venture partner, Furukawa Group of Japan, for change in equity structure of Minda Furukawa Electric Private Limited (joint venture company-JVCO).
As per the proposed realignment, the equity stake of joint-venture partner in the JVCO will change from 49 percent to 75 percent and stake of Minda Corporation will change from existing 51 percent to 25 percent, the company said in its filing.
It further said the change in equity structure will be through a mix of sale of shares of JVCO by Minda Corporation and additional equity infusion into JVCO by Furukawa Group of Japan.
Minda said the joint venture between the company and Furukawa Group, Japan will continue with company continuing to hold a significant 25 percent equity stake.
Minda Corporation is one of the largest suppliers of electronic & mechanical security system to 2 wheelers, 3-wheelers and off-road vehicles.
At 11:31 hours IST, the stock was quoting at Rs 142, up Rs 11.15, or 8.52 percent on the BSE.
