Minda Corporation to Acquire 49% Stake in Flash Electronics for Rs. 1,372 Crores
Team Finance Saathi
15/Jan/2025
What's covered under the Article:
- Minda Corporation announces the acquisition of 49% stake in Flash Electronics for Rs. 1,372 Crores.
- The acquisition strengthens Minda’s position in the automotive parts and electric mobility sectors.
- Flash Electronics' robust turnover and manufacturing plants in India, Germany, and Hungary contribute to the acquisition’s value.
On January 15, 2025, Minda Corporation Limited made an exciting announcement regarding the acquisition of a 49% equity stake in Flash Electronics (India) Private Limited, a prominent player in the automotive components industry. This move is part of Minda’s strategic growth plan, aimed at enhancing synergies in products, customers, and manufacturing technologies across the automotive sector. The acquisition is valued at a significant Rs. 1,372 Crores, with Minda acquiring 2,55,40,578 equity shares at Rs. 537.18 per share.
Overview of Flash Electronics
Founded in 1989, Flash Electronics (India) Private Limited is a key manufacturer of automotive electrical products and components, with a strong presence across India, Germany, and Hungary. The company produces a wide range of products, including electric mobility components, gears, shafts, throttle bodies, and other parts critical for the functioning of two-wheelers, three-wheelers, and four-wheelers.
Flash has expanded its manufacturing footprint with 8 plants located strategically across India and Europe, which speaks to the company’s strong global presence. In the last financial year, Flash Electronics reported a consolidated turnover of Rs. 1340.02 Crores, up from Rs. 1210.67 Crores in 2022-23, signaling its consistent growth.
Acquisition Strategy and Impact
The primary objective of this acquisition is to create a strategic partnership between the two companies, offering synergies across products, technology, and customer bases. This acquisition will enhance Minda’s position in the automotive parts sector, particularly in areas such as electric mobility and electrical components for vehicles.
By acquiring a 49% stake in Flash Electronics, Minda Corporation strengthens its portfolio in the rapidly growing electric mobility space, aligning with the global shift towards electric vehicles (EVs) and clean energy solutions. The partnership is expected to bring innovative solutions, leveraging Flash’s expertise in automotive electronics and Minda’s expansive network.
Regulatory Compliance
Minda Corporation’s acquisition of Flash Electronics is fully compliant with the SEBI Listing Regulations, and no regulatory approvals are required for the deal. The transaction is expected to be completed by January 31, 2025, further confirming the company’s commitment to growth and expansion in the automotive industry.
The deal is a cash consideration acquisition, with the purchase price set at Rs. 537.18 per share. This pricing reflects Flash Electronics' strong financial performance and growth prospects in the global automotive sector.
Flash Electronics’ Financial Performance As of the latest financial statements, Flash Electronics has shown consistent growth, with a turnover of Rs. 1340.02 Crores for the financial year ending March 31, 2024, up from Rs. 1210.67 Crores in the previous year. This solid growth trajectory, coupled with its established global presence, makes Flash an attractive partner for Minda Corporation, which seeks to further strengthen its position in the automotive sector.
What’s Next for Minda Corporation
This acquisition is set to be a significant move for Minda Corporation in diversifying its portfolio and tapping into the growing demand for electric mobility and automotive electronics. The partnership will help both companies unlock new opportunities, improve manufacturing excellence, and enhance their capabilities in the global automotive market.
The Upcoming IPOs in this week and coming weeks are Land Immigration, EMA Partners, Stallion India and Capital Numbers.
The Current active IPO are Kabra Jewels, Rikhav Securities and Laxmi Dental.
For more updates on executive appointments and other business developments, we encourage readers to explore related news and articles, including the latest on IPOs, share market updates, and financial strategies at:
Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi
Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.
Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.