ZF Commercial Vehicle Control Systems Block Deal: Wabco Asia likely to sell 5% stake for ₹1,423 crore
ZF Commercial Vehicle Control Systems Block Deal: Wabco Asia likely to sell 5% stake for ₹1,423 crore
Wabco Asia Private Ltd is likely to sell a 5% stake in German automotive systems manufacturer ZF Commercial Vehicle Control Systems India Ltd, valued at ₹1,423.1 crore, sources privy to the developments told CNBC-TV18.
The shares were offered at a floor price of ₹14,980 each, representing a 13.3% discount to the company's last closing price on the NSE, sources in the know told CNBC-TV18.
The deal was executed through a block trade, with Citigroup Global Markets India serving as the sole banker for the transaction. Post-sale, the remaining stake held by Wabco Asia will be subject to a lock-up period of 120 days.
In February this year, ZF Commercial Vehicle Control Systems said the company will drive its growth engine in India from a newly inaugurated plant in Oragadam, near Chennai. Spread across 44 acres, the facility will be used to manufacture safety, automated, connected and EV systems for commercial and passenger vehicles.
Phase one of the plant, which covers an area of 7,200 square feet, has also been earmarked for export growth, even as it doubles up as a "frugal engineering" base. Its next phase of expansion has been provisionally scheduled for 2025.
"Our growth will have to be supported by our new plants as our existing ones in Mahindra World City and Ambattur are full," said ZF Commercial's managing director, P Kaniappan in an exclusive chat with CNBC-TV18, alongside ZF Group India President, Akash Passey. "So, our new plant in Oragadam will be our key growth driver," he added.
The ZF Group has announced an investment of ₹1,800 crore over a 10-year-long investment window, towards establishing its latest plant. Kaniappan said that nearly ₹200 crore of this investment would be made by the end of this year, "We have already invested ₹175 crore in land, building and equipment at the plant; we will invest ₹30 crore more and begin production by the end of this year."
Shares of ZF Commercial Vehicle Control Systems India Ltd ended at ₹17,185.00, down by ₹124.15, or 0.72% on the BSE.