Uno Minda Shares Jumps On Increasing Stake In JV With Westport To 76%

Uno Minda Ltd. shares in the morning trade session surged nearly 2% on Friday after the company on September 28 announced to increase in stake in its joint venture (JV) with Westport to 76% to accelerate growth in growing CNG and other alternate fuel markets.

"Board has approved to increase stake in Minda Westport Technologies Limited ("MWTL") from 50% to 76% by acquiring additional 26% stake from its joint venture partner Westport Fuel Systems Italia S.r.l. ("Westport")," the company stated in a press release.

The purchase consideration for 26% stake is approx. Rs 14.81 Crores. The acquisition of shares is targeted to be completed on or before 31st March 2024.

Uno Minda and Westport is also amending its joint venture agreement to include future hydrogen components in addition to CNG/LNG /LPG components and Kits in JV territory of South Asia comprising of India, Bhutan, Sri Lanka and Nepal, company in a press release.

Mr Vivek Jindal, Director Uno Minda and Managing Director MWTL said, "The CNG vehicle segment's demand in India has increased significantly and is further expected to grow exponentially in coming years given its cost effectiveness and feasibility. By integrating Uno Minda manufacturing and engineering expertise with Westport's technologies and products, this partnership will cement Uno Minda as market leader in alternate fuel systems to tap the ever-growing Indian automotive market. The decade long partnership with Westport has been further strengthened with the proposed consolidation, creating a manufacturing hub to serve the Indian market for passenger cars, commercial vehicles and the large three-wheel vehicle segment."

Bart van Aerle, Executive Vice President, OEM & IAM of Westport Fuel Systems, said, "Westport has confidence that this restructured arrangement with Uno Minda and Westport will result in a more focused, streamlined approach which will ultimately benefit our customers and the growth and profitability of MWTL."

Meanwhile, UNO Minda stock currently trading 1.39% higher at Rs 603.50 apiece on the BSE. At the time of writing, it hit the day's high of Rs 610.20 and the day's low of Rs 598.55. It surged 1% in 1 week. While, in 1 year, it gained 7.24%. In 3 and 5 years, it gained 259.55% and 242.33%, respectively. It has a market cap of Rs 34,547.78 Crore. It is a midcap stock.

About - Uno Minda Limited

Uno Minda Limited (formerly known as Minda Industries Limited) is a leading global manufacturer and supplier of proprietary automotive solutions and systems to OEMs as Tier-1. Incepted in 1958, it is one of the leading manufacturers of automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems and alloy wheels in India.