The Board of Minda Industries, flagship of the UNO Minda Group has approved further investment of Rs 61.2 crores in Minda Kosei Aluminum Wheels by way of subscribing to rights issue at face value of Rs 10 per share.

The existing shareholders and JV partner have renounced their rights in favour of MIL enabling the company to increase its stake from 70 percent to 77.35 percent in Minda Kosei. Minda Kosei has significant growth opportunities with increasing penetration of 4 wheeler alloy wheels, the company said in a press release. During last one year, the company had announced expansion at both plants of Minda Kosei  at Bawal and Gujarat plants to enhance its total capacity from current 210,000 wheels per month to 330,000 wheels per month by fiscal 2024.

Minda Industries will invest around Rs 17.49 crore to acquire the remaining stake of promoters in four partnership firms  --  Samaria Engineering, S M Auto Industries, YA Auto Industries and Auto components. This is in line with UNO MINDA Group’s vision and efforts towards consolidation. The Group had initiated a consolidation exercise five years ago as part of which stakes owned by promoters under UNO Minda group in various entities were transferred to Minda Industries Ltd. While all group companies were transferred to Minda Industries in last few years, there were four partnership firms where promoters held some stake along with third party. The company is now consolidating its stake in these partnership firm by acquiring remaining stake of promoters effective from 1st Jan 2022. The existing and revised stake after additional investment is in these partnership firms will be as follows.

Nirmal K Minda, CMD, Uno Minda Group says, " The strengthening of its stake in Minda Kosei and consolidation of partnership firms are steps towards this commitment. Consolidation of group companies/firms over the years has transformed us into a unique cohesive unit with considerable financial strength growing as unified force.”