The company however said the sale of shares has no effect on ZF’s control of ZF CVCS India, as it is the long-term strategy of ZF to maintain a solid majority shareholding in the entity.
19 Jun 2024 | 3087 Views | By Autocar Professional Bureau
ZF Group, the world’s third largest automotive supplier on Wednesday, said it sold a 7.5% stake in its listed Indian subsidiary, ZF CVCS India, "to increase liquidity and financial flexibility" for its growth plans. Shares of the Indian company fell 5% on the news.
The company however said the ...
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ZF Group, the world’s third largest automotive supplier on Wednesday, said it sold a 7.5% stake in its listed Indian subsidiary, ZF CVCS India, "to increase liquidity and financial flexibility" for its growth plans. Shares of the Indian company fell 5% on the news.
The company however said the sale of shares has no effect on ZF’s control of ZF CVCS India, as it is the long-term strategy of ZF to maintain a solid majority shareholding in the entity. The promoter had a 75% stake in the listed Indian unit as of March 2024.
ZF CVCS India boasts of being a market-leader in the Indian CV supplier industry and remains an important pillar in ZF´s global growth strategy.
On the back of a supportive market environment in India, ZF CVCS India has shown a strong operating and financial performance. The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market, the statement added.
ZF Group had sales revenues of €1.1 billion (around Rs 10,000 crores) from India in its latest financials across all segments. ZF Commercial Vehicle Control Systems India Ltd is Part of ZF’s new Commercial Vehicle Solutions (CVS) division and is the region’s market leader for advanced braking systems, conventional braking products, and related air assisted technologies and systems.