Wabco to Sell 5% Stake in ZF Commercial Vehicle Control Systems India for ₹1,423.1 Cr

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Synopsis:

Wabco Asia to sell a 5% stake in ZF Commercial Vehicle Control Systems India for ₹1,423.1 crore. The shares are offered at ₹14,980 each, a 13.3% discount on the last closing price. Citigroup Global Markets India is the sole banker managing the deal.

ZF Commercial Vehicle Control Systems News Today

Wabco Asia Private Ltd is set to divest a 5% stake in ZF Commercial Vehicle Control Systems India Ltd. The transaction, valued at ₹1,423.1 crore, involves offering the shares at a floor price of ₹14,980 each, with a 13.3% discount on the last closing price on the NSE.

The block trade will be facilitated by Citigroup Global Markets India, serving as the sole banker for the deal.

Post-transaction, Wabco Asia’s remaining stake in ZF Commercial Vehicle Control Systems India will be under a lock-up period of 120 days, preventing further immediate sales.

Expansion Plans in India

ZF Commercial Vehicle Control Systems India, under the ZF Group, is focused on expanding its presence in India.

In February, the company announced that its growth strategy would be driven by a new plant inaugurated in Oragadam, near Chennai.

Explore:Zf Com Ve Ctr Sys Ind Ltd Share Price

Oragadam Plant Details

The facility, spanning 44 acres, is designated for the manufacture of safety, automation, connected, and electric vehicle systems for both commercial and passenger vehicles.

ZF Group has committed an investment of ₹1,800 crore over a decade for the Oragadam plant.

By the end of this year, approximately ₹200 crore will be invested, with ₹175 crore already allocated to land, building, and equipment, and an additional ₹30 crore planned to start production.

Leadership Insights

ZF Commercial's Managing Director, P Kaniappan, and ZF Group India President, Akash Passey, highlighted the importance of the new Oragadam plant as a critical growth driver. 

The new plant is necessary due to capacity constraints at existing facilities in Mahindra World City and Ambattur.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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