Lucas Indian Service to up stake in India Nippon Electricals to 70%

June 24, 2023 07:50 pm | Updated 07:50 pm IST - CHENNAI

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.

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