Lucas Indian Service Ltd. (LIS), one of the promoters of India Nippon Electricals Ltd. (INEL), has agreed to acquire more than 44 lakh shares from two other promoter entities for a total consideration of ₹168.91 crore.
A Share Purchase Agreement was signed between LIS and Mahle Holding (India) Pvt. Ltd. (MHIPL) on Friday for acquisition of 30 lakh shares through an off-market transaction at ₹356.49 apiece aggregating to ₹106.95 crore, INEL said in a regulatory filing.
The second agreement was entered with Mahle Electric Drives Japan Corporation (MEDJ) for acquiring 14.15 lakh shares through a block deal for ₹438 apiece aggregating to ₹61.97 crore. The transaction will be completed on June 26.
Currently, LIS holds 50.80% stake in INEL, while MEDJ holds 6.25% and MHIPL holds 13.26%. After this transfer, the shareholding of both MHIPL and MEDJ would get reduced to ‘Nil’ and LIS will hold 70.32%.
On Friday, shares of INEL closed at ₹438.50, a loss of ₹9.40 or 2.10% on the BSE.
INEL was incorporated in 1984 and converted into a joint venture in 1986 between LIS, a wholly-owned subsidiary of Lucas-TVS Ltd., and MEDJ, a company of MAHLE Group, Germany, to manufacture electronic ignition systems for two-wheelers, three-wheelers, and portable engines.
INEL has factories in Hosur, Puducherry and Haryana. It makes the entire range of 2/3 wheelers, digital and analog ignition products.
