Uno Minda Ltd, a global technology leader in automotive components and systems manufacturing, has received board approval to raise up to ₹2,500 crore and increase investments in subsidiaries to support long-term growth and rising customer demand.
The company said the proposed fund raising would be undertaken, as and when required, in one or more tranches through domestic and/or overseas markets from eligible investors.
The fund mobilisation will be carried out through foreign currency convertible bonds, secured or unsecured bonds, non-convertible debentures or qualified institutional placements.
Investment in EV subsidiary
The board placed a resolution seeking shareholders’ consent for investing up to ₹20 crore in the share capital of Uno Minda EV Systems Pvt Ltd in one or more tranches to support working capital requirements.
Uno Minda EV Systems, a wholly owned subsidiary of the company, manufactures EV-specific components and systems for electric two-wheelers and three-wheelers. Uno Minda currently holds 100% equity stake in the company.
Stake hike in Minda Onkyo India
The board further approved acquisition of an additional 19% stake in Minda Onkyo India Pvt Ltd at a cash consideration of ₹0.68 per share, which would increase Uno Minda’s holding to 99%.
Minda Onkyo India, a subsidiary company, manufactures speakers and speaker systems. Uno Minda currently holds 80% stake in the company and plans to acquire an additional 19% equity stake.
During August 2024, the company had approved acquisition of a 49% equity stake at ₹0.65 per share, followed by another 30% stake acquisition.
Additional investment in Auto Innovations arm
Uno Minda also said its board approved further investment of ₹310 crore over a period of two years in Uno Minda Auto Innovations Pvt Ltd to support business growth and rising customer demand.
The company currently holds 100% stake in Uno Minda Auto Innovations.