Shares of Uno Minda rose 2% to ₹909 in early trade on February 18, reversing a three-day losing streak. The increase followed the company’s announcement of a joint venture with Suzhou Inovance Automotive Co. Ltd and its subsidiary, Inovance Automotive (HK) Investment Co. Ltd.
The stock had declined over 8% in the past week and 17% in the last month.
Uno Minda Auto Innovations Private, a wholly owned subsidiary of Uno Minda, will be converted into a joint venture. Inovance Automotive (HK) Investment Co. will acquire a 30% stake, while Uno Minda will hold the remaining 70%.
The venture will focus on manufacturing high-voltage EV powertrain components, including combined charging units, E-axles, inverters, and motors.
The joint venture will operate in India, with products sold under both Uno Minda and Inovance Automotive brands. It will have an eight-member board, five appointed by Uno Minda, including the chairman, and three by Inovance Automotive. Governance provisions include share transfer restrictions, board representation rights, and regulations related to capital structure changes.
Uno Minda had previously signed a technical license agreement with Inovance Automotive in June 2024. The new joint venture builds on that arrangement, expanding collaboration between the companies in the EV powertrain segment.
Uno Minda reported a 20% increase in net profit year-on-year, reaching ₹157 crore from ₹131 crore. Revenue also rose 20% to ₹3,136 crore, compared to ₹2,611 crore in the same quarter last year. EBITDA stood at ₹301 crore, with margins declining slightly to 9.6% from 10.2% in the previous year.
At 9:40 am, Uno Minda’s stock was trading at ₹900, up 1.2% from the last close on the NSE.
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Published on: Feb 18, 2025, 3:21 PM IST
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