Minda Corporation Limited, a leading name in the automotive components sector, has recently announced an investment of INR 15 Crores in its wholly-owned subsidiary, Spark Minda Green Mobility Systems Private Limited (SMGM). This investment was made by way of subscribing to 1,50,00,000 equity shares of SMGM at a face value of INR 10 each, totaling to INR 15 Crores. This move is aimed at supporting the subsidiary's operations and strengthening its business in the field of DC-DC, Telematics, Battery Chargers, OBC, IP65, IP67, and HV Solutions.

Investment Details and Transaction Breakdown

• Securities Allotted: 1,50,00,000 equity shares of INR 10 each
• Total Consideration: INR 15,00,00,000
• Date of Allotment: February 3, 2025

Spark Minda Green Mobility Systems (SMGM): A Key Subsidiary

SMGM, which was incorporated as a wholly-owned subsidiary of Minda Corporation in February 2021, has shown substantial growth in its operations over the years. The company is engaged in the development and manufacturing of several innovative products, particularly in green mobility solutions, and has expanded its business portfolio to include telematics, battery charging solutions, and high-voltage solutions.

For the financial year 2023-2024, SMGM reported a turnover of INR 3,544.12 lacs, highlighting a strong growth trajectory in its operations. Notably, this marks a significant increase compared to its previous turnover of INR 2,453.63 lacs in FY 2022-2023 and INR 45.97 lacs in FY 2021-2022. This continued growth is expected to be further supported by the recent infusion of funds from Minda Corporation.

Related Party Transaction at Arm's Length

As SMGM is a wholly owned subsidiary of Minda Corporation, this investment qualifies as a related party transaction. However, it has been carried out on an arm’s length basis, ensuring that the terms and conditions are fair and in line with standard business practices.

The investment will not affect the shareholding structure of Minda Corporation in SMGM, as it continues to maintain full ownership. The company aims to utilize this investment to further support and streamline the operations of its subsidiary, enhancing its capabilities to execute its business objectives and continue delivering innovative products in the green mobility sector.

Business Expansion and Objectives

The main objective of this investment is to ensure SMGM's smooth business operations, especially as it continues to expand its product offerings in the green mobility solutions space. The focus will be on driving growth and supporting business continuity, further solidifying SMGM's position in the market.

No Regulatory Approvals Required

There are no additional governmental or regulatory approvals required for this investment, as SMGM is a fully owned subsidiary, and the transaction is not subject to external scrutiny.

Investment Impact

This investment will not result in any changes in the shareholding structure of Minda Corporation in SMGM. The company remains a 100% stakeholder in its subsidiary.

SMGM’s Business Highlights:

• Incorporation: February 22, 2021, under the Companies Act, 2013
• Core Business: DC-DC converters, telematics, battery charging solutions, OBC, IP65, IP67, and high-voltage solutions
• Turnover:
  • FY 2023-2024: INR 3,544.12 lacs
  • FY 2022-2023: INR 2,453.63 lacs
  • FY 2021-2022: INR 45.97 lacs
• Country of Presence: India

Through this investment, Minda Corporation continues its commitment to advancing green mobility solutions and supporting the growth of SMGM. This strategic move strengthens the group’s position in the rapidly evolving mobility sector, where green and sustainable technologies are becoming increasingly important.

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