Minda Industries rose 1.11% to Rs 349.45 after fulfillment of closing condition on acquisition of Germany-based Delvis Gmbh.
Closing conditions for acquisition of Germany-based Delvis Gmbh including its two wholly owned subsidiaries have been completed and consideration has been paid for acquisition of the said entities. The closing took place on 12 December 2019. Delvis Gmbh is now became subsidiary of Minda Industries. The announcement was made after market hours on Friday, 13 December 2019.In October, Minda Industries entered into definitive agreement with shareholders of Germany based automotive lamps engineering, design company & testing, Delvis Gmbh, to acquire 100% interest in the company. The enterprise value of the company along with its two subsidiaries Delvis Solution and Delvis Products is approximately Euro 21 million.
The transaction will be funded by mix of debt and equity. The acquisition is part of the firm's strategy to augment/acquire technological capabilities in existing product lines (automotive lighting).
Delvis is among the top players with state of the art lighting technology and works closely with German OEMs (VW / Audi/ Porche) in pre-development activities for high end platforms, which deploy the next level of technologies. This acquisition is expected to deliver considerable synergies for growth of lamp business in India and enhance its product offerings to OEMs.
Shares of Minda Industries gained 3.49% in two trading sessions to its current market price of Rs 349.45 from its recent closing low of Rs 337.65 on Thursday, 12 December 2019.
The Nifty 50 index was down 7.60 points or 0.06% at 12,079.10.
On the technical front, the stock's RSI (relative strength index) stood at 53.422. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading marginally below its 50-day moving average (DMA) placed at Rs 350.66. The stock was trading well-above its 200-day moving average placed at Rs 335.25.
On a consolidated basis, Minda Industries' net profit fell 32% to Rs 49.44 crore on 10.7% decline in net sales to Rs 1,359.58 crore in Q2 September 2019 over Q2 September 2018.
Minda Industries is a supplier of automotive solutions to original equipment manufacturers. The company offers a range of products across various verticals of auto components, such as switching systems, acoustic systems and alloy wheels among others.
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