Minda Corp’s stock surges after board approves fundraise of Rs 1,000 cr
Source: Business Standard
The August pattern was based on indicators such as automobile and tractor sales and e-way bills, which had witnessed better performance
Auto components player Minda Corporation’s share price surged 2.52 per cent at Rs 543.90 a piece on the BSE. Minda Corporation’s stock price jumped today after the company’s board approved a fundraise of Rs 1,000 crore through various lending instruments.
“The board has considered and approved the proposal of raising of funds by way of further issuance of securities through public and/or private offerings including preferential issue, qualified institutions placement, further public offer or any of the permissible modes (in one or more tranches), for an aggregate amount not exceeding Rs 1000 crores and subject to approval of the Company’s shareholders and receipt of applicable regulatory approvals,” the company said in an exchange filing on Thursday.
The share price of the company has appreciated 40 per cent year to date against a rise of 13 per cent in the benchmark BSE Sensex during this period.
Minda Corporation is a key player in the Indian automotive industry. As the flagship company of the Spark Minda Ashok Minda Group, it operates 34 plants and offices both in India and abroad, including a design office in Japan. Minda Corporation is a major supplier of electronic and mechanical security systems for two-wheelers, three-wheelers, and off-road vehicles.
For the April-June quarter of financial year 2024-25 (Q1FY25), Minda Corporation reported a net profit of Rs 64 crore for the June 2024 quarter. This compares to Rs 45 crore in the same period of the previous fiscal year. Revenue from operations slipped to Rs 1,192 crore from Rs 1,075 crore.
The company has a total market capitalisation of Rs 12,880.40 crore. Its shares are trading at a price to earnings multiple of 61.80 times with an earning per share of Rs 8.58, according to data available on BSE.
At 12:52 PM; the share price of the company was trading 1.56 per cent higher at Rs 538.75 a piece. By comparison, the BSE Sensex was trading 0.13 per cent higher at 81,630 levels.
First Published: Sep 12 2024 | 1:08 PM IST
