ZF Group Divests Stake for Financial Flexibility

German auto supplier ZF Group has sold a 4.32% stake in its Indian subsidiary, ZF Commercial Vehicles Control System India, for Rs 1,022 crore. The move aims to increase financial flexibility for growth, yet retains ZF's majority control. Aditya Birla Sun Life Mutual Fund acquired part of the stake.

In a significant financial maneuver, German auto component supplier ZF Group has strategically offloaded a 4.32% stake in its Indian subsidiary, ZF Commercial Vehicles Control System (CVCS) India, for a substantial Rs 1,022 crore.

The company revealed that the sale, executed at an average price of Rs 12,465.19 per share, is designed to bolster its financial flexibility, facilitating further expansion in the burgeoning Indian market.

Despite this divestiture, ZF maintains its robust control over the subsidiary, underscoring its long-term commitment to India. Notably, Aditya Birla Sun Life Mutual Fund invested in 1.60 lakh shares, highlighting investor confidence.

(With inputs from agencies.)