Automotive Axles rose 4.41% to Rs 2091.05 after Cummins Inc. made an open offer to buy up to 26% stake in the company.
The open offer is for the acquisition of 39.29 lakh fully paid-up equity shares (26% equity) at Rs 1504.43 each.The open offer price is at 28.05% discount to the ruling market price.
Automotive Axles is a joint venture of Kalyani Group and US-based Meritor Inc., with each entity owning 35.52% stake in the company. At the parent level, Meritor Inc. has been acquired by Cummins Inc. Following the acquisition, Cummins Inc owns 35.52% stake in Automotive Axles, which makes open offer mandatory.
BF Investment, the other promoter that holds 35.52% stake in Automotive Axles, surged 9.61% after Cummins Inc made the open offer. BF Investment is a part of $2.5 billion Kalyani Group from Pune.
With the open offer, Cummins Inc will be a co-promoter of Automotive Axles along with the Kalyani group.
Automotive Axles manufactures drive axles, non-drive axles, front steer axles, specialty & defence axles and drum & disc brakes. It provides these products to the major domestic and global manufacturers of trucks & buses pertaining to segments such as light, medium & heavy commercial vehicles, military & off-highway vehicles, aftermarket and exports.
Net profit of Automotive Axles surged 445.78% to Rs 30.40 crore on 96.15% rise in net sales to Rs 500.20 crore in Q1 June 2022 over Q1 June 2021.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
