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Leading auto parts maker MM Forgings announced today that it will pick up 88 per cent stake in Chennai-based start-up, Abhinava Rizel Private Limited (ARPL) to produce electric vehicle (EV) powertrain components.
In a regulatory filing, MM Forgings said it has executed a share subscription and shareholders’ agreement with ARPL, aggregating to 88 per cent of its issued and paid up share capital.
Even though the cost of acquisition was not disclosed, they have come forward saying that they have secured 2.64 million freshly issued fully paid up equity shares for a cash consideration.
Incorporated in May 2022, ARPL is a start-up engaged in the Research & Development and manufacturing of parts/components and systems including electric powertrain, drivetrain systems, electric motors, motor controllers/drives, gearboxes and ADAS systems for various industries.
Chennai-basedM M Forgings ended FY22 with the highest-ever turnover of ₹1,123 crore against ₹747 crore in FY21 and a profit after tax of ₹92 crore supported by robust sales in the medium and heavy trucks segment.
Meanwhile, the shares of MM Forgings touched an intra-day high of ₹999 a piece on the National Stock Exchange after opening at ₹932.95 per share.
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