Minda Corp to buy 49% stake in Flash Electronics for Rs 1,372

Pune: Minda Corporation, the flagship of Spark Minda, on Wednesday said its board has approved to acquire a 49 per cent equity stake in Flash Electronics for Rs 1,372 crore in cash.

Minda will partner with the company to establish what it called the fastest-growing electric vehicle (EV) platform in India.

Minda said it will acquire the shares at Rs 537.18 per equity share aggregating to Rs 1,372 crores, in a stock exchange filing.

Minda share price gained 5.53 per cent at Rs 571.80 a piece on the BSE in Wednesday’s intraday trade

The collaboration combines Minda Corp's expertise in automotive body electronics with Flash Electronics' specialization in engine and powertrain electronics.

“This collaboration aims to bolster both organizations’ positions in the automotive industry by leveraging each other's strengths and driving future growth by unlocking synergies across products, technology and customers,” Minda Corporation stated.

New Delhi based, Flash Electronics is engaged in manufacturing and selling automotive products across Electrical and Electronics, Electric Mobility, Gears, Shafts, Transmission Assembly, Throttle Bodies for Two, Three & Four wheelers.

Flash has 8 manufacturing plants across India, Germany & Hungary and is driven by a strong team of 2500+ individuals. The total consolidated turnover of Flash as per last audited financial statements for fiscal March 31, 2024 is Rs 1,340.02 crores.

Flash is expected to achieve revenue over Rs 1,500 crore in FY25 and the firm has been impressively delivering a CAGR of over 17 per cent during past years, Minda Corporation said in a statement.

Moreover, the acquired company is expected to deliver an Ebitda margin of around 14 per cent and with a steady ROCE of over 22 per cent.

Minda Corporation has a total market capitalization of Rs 13,561.78 crore. Its shares are listed at a price to earnings multiple of 61.59 and at an earnings per share of 9.21.