12 Oct , 2022 By : Monika Singh
Cummins Inc on Tuesday announced an open offer to acquire a 26% stake in auto component company Automotive Axles, which is a joint venture of Kalyani Group and US-based Meritor, with each entity owning 35.52% stake in the company.Â
Cummins said it would acquire up to 39.29 lakh fully paid-up equity shares with a face value of `10. The open offer price has been fixed at `1,504.43 per share. This was part of the mandatory offer following Cummins Inc’s global acquisition of Meritor Inc.
Cummins Inc announced the acquisition of Meritor Inc in February this year. The US-based company is a global supplier of drivetrains, mobility, braking, aftermarket and electric powertrain solutions to commercial vehicle and industrial markets.
Meritor Inc is the parent company of Meritor Heavy Vehicle Systems (MHVS), which has a 35.52% stake in Automotive Axles. The Kalyani Group holds a 35.52% stake in Automotive Axles while the rest (28.86%) is with the public.
Automotive Axles is into commercial vehicle axles, brakes and suspension systems. It is the leading independent axle supplier in the country and number two in brakes. It also supplies to the defence segment. The joint venture has its manufacturing base in Mysore and other plants in Jamshedpur for supplying brakes and allied products for Tata Motors, a plant in Pantnagar, which supplied brakes to Ashok Leyland and a facility in Hosur.
The company has a presence in the 5-55 tonne vehicle axle range brakes in the 310-410 diameter range for commercial vehicles. Automotive Axles reported a turnover of `501 crore during Q1FY23.
The Automotive Axles stock rose 0.45% on the BSE on Tuesday and closed at `2,011.85 after the open offer announcement.
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