Uno Minda stock tumbles amid muted volumes; board gives nod to Europe subsidiary buyout

Shares of Uno Minda Limited fell 2.5 percent on September 12, extending the last five days’ trading loss amid lower volumes. Trading volume on the stock has plummeted to an average of 5 lakh shares a day in the last week, from 12 lakh shares a day in the last month. At 2:01 pm, Uno Minda shares were trading at Rs 612 on NSE. The stock has gained 24 percent in the last six months.

Earlier, on September 11, the company’s board of directors approved the acquisition of the remaining 3.81 percent stake in Uno Minda Europe Gmbh to make it a wholly-owned subsidiary. According to the exchange filing, the company will purchase the remaining stake held by George Hutter in Uno Minda Europe Gmbh, a step-down subsidiary of the company, at a consideration of Euro 1.3 million or about Rs 11.5 crore. The stake will be purchased by SAM Global Pte Ltd, a wholly-owned subsidiary of Uno Minda Ltd.

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During the board meeting held on Tuesday, the company also announced that the board also approved the fixation of the appointed date for the merger of Minda I Connect Pvt Ltd with Uno Minda Ltd as April 1, 2023.

The NCLT Delhi on September 1 asked the company to fix an appointed date for the merger of the two companies. Minda I Connect Pvt Ltd is involved in the development of software, hardware, designing, and programming in automotive mobility in the IT segment and automation providing products.

In August, Uno Minda commissioned two plants to manufacture electronic vehicle (EV) components and systems. The plants at Farukhnagar and Bawal in Haryana will make a variety of components for electric two and three-wheelers, said the multinational automotive company.

The Farukhnagar plant has been set up in a joint venture with FRIWO AG of Germany to manufacture components like on-board chargers, off-board chargers, motor control units, DC-DC converters and battery management systems.

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