ZF, the Germany-headquartered global auto parts supplier, on Wednesday said it has sold a 7.5 per cent stake in its listed Indian arm, ZF Commercial Vehicle Control Systems India Ltd (ZF CVCS), to “increase liquidity and financial flexibility for its growth plans”.
The share sale does not alter ZF’s control over the Indian arm as it intends maintaining a majority shareholding in the entity for the long term, according to a statement.
ZF Group has sold 1,425,000 shares in the Indian subsidiary.
ZF CVCS opened its sixth manufacturing plant at Oragadam, near Chennai, this February to serve as a hub for manufacturing and assembling electric mobility and advanced mobility technologies for light, medium, and heavy-duty commercial vehicles; women make up about 80 per cent of its workforce.
The BSE-listed company had said it would invest ₹1,800 crore in the plant over 10 years.
Shares of ZF CVCS fell 5.29 per cent to ₹16,293.55 on BSE at around 3.15 pm on Wednesday