The automotive battery maker informed exchanges that in November 2018, Johnson Controls International PLC announced its intention to sell its power solution business
Amara Raja Batteries shares fell 4.5 percent intraday on April 3 after the agreement between Galla Family and Johnson Controls (JC) terminated.
One of the major reasons to fall in share price after termination of agreement could be the uncertainty over 26 percent stake held by Johnson Controls (JC) in Amara Raja Batteries, analysts said.
It is the key point to watch out for, because in November 2018, JC announced the sale of its power solution business for $13.2 billion to Brookfield, they added.
The second reason analysts pointed is the valuations and third is that the company did not inform exchanges in November 2018.
The stock was quoting at Rs 702.15, down Rs 18.90, or 2.62 percent on the BSE, at 12:42 hours IST.
The automotive battery maker informed exchanges that in November 2018, Johnson Controls International PLC announced its intention to sell its power solution business.
"Consequently, JC and the Galla Family reached an agreement by which Galla Family would acquire 2 percent equity shares of the company from JC and terminate the shareholders agreement with effect from April 01, 2019," it added.
"JC will continue to provide technology assistance to Amara Raja for an additional period as mutually agreed," the company said, adding as such there is no impact on the company's operation on account of termination of the agreement(s).
