Minda Corporation to raise funds up to ₹1,000 crore through public or private offerings

Minda Corporation announced on Thursday the board of directors of Minda Corporation has considered and approved the proposal to raise funds up to ₹1,000 crore. The company stated that the funds can be raised through public or private offerings through various instruments. The shares of the company were trading higher by 0.97% at ₹536.20 per share.

The company may raise funds through further issuance of eligible securities which include equity shares, or securities convertible to equity shares. Minda Corporation stated that it may raise funds through a preferential issue, a qualified institution placement (QIP), or a combination of both.

Last week, Minda Corporation announced that it has signed a technology licensing agreement with Sanco to offer electrical distribution system solutions for the electric vehicle market. The company said that the agreement will allow Minda Corp to enhance its product portfolio in the EV industry.

Under the agreement, Minda Corp & Sanco will locally develop EV connecting systems, charging gun assemblies with sockets and accessories, bus cars, cell contact systems, power distribution units, and battery distribution units.

Aakash Minda, executive director of Minda Corporation, said that the collaboration with Sanco is a significant milestone for the company and will allow it to offer new EV solutions and expand its presence in the EV industry.

“By offering new age EV solutions, we will enhance the overall kit value across vehicle segments, with a commitment to achieve successful localization, delivering greater value for our customers,” he said.

In Q1FY25, Minda Corp reported a 42% year-on-year (YoY) rise in net profit to ₹64 crore. The operating revenue for the quarter climbed 11% YoY to ₹1,192 crore. During the quarter, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 15% YoY to ₹132 crore.

The EBITDA margin for the quarter expanded by 38 basis points (bps) YoY to 11.1% while the net profit margin grew by 115 bps YoY to 5.3%.