ZF Group sells 7.5% stake in Indian subsidiary for growth initiatives – ET Auto

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ZF Group sells 7.5% stake in Indian subsidiary for growth initiatives – ET Auto


ZF CVCS India has benefited from a favorable market environment and has delivered strong operational and financial results over the past few years.

New Delhi: ZF Group has sold a 7.5% stake in its Indian subsidiary, ZF Commercial Vehicle Control Systems India Limited (ZF CVCS India). This move aims to enhance the financial flexibility needed for the company’s growth initiatives.

Despite the sale, ZF Group retains a strong majority in ZF CVCS India. The transaction involved 1,425,000 shares being sold to institutional investors. This helps ZF bolster its liquidity for future growth projects.

The sale aligns with ZF’s long-term strategy to maintain a significant shareholding in ZF CVCS India. As the market leader in India’s commercial vehicle supplier industry, ZF CVCS India remains crucial to ZF’s global growth plans.

ZF CVCS India has benefited from a favorable market environment and has delivered strong operational and financial results over the past few years.

The company states this transaction will “strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market.” This demonstrates ZF’s focus on leveraging its resources for sustained growth in the region.

Overall, ZF Group’s decision reflects a strategic move to ensure sufficient financial agility while maintaining essential control over its prominent Indian subsidiary.

  • Published On Jun 19, 2024 at 03:55 PM IST

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