Spain’s CIE Automotive has picked up an additional 5% stake in its auto components joint venture with Mahindra Group for Rs 483 crore (around $70 million).
CIE Automotive bought about 18.9 million shares of Mahindra CIE Automotive Ltd at Rs 255 apiece from Mahindra Vehicle Manufacturers Ltd on the open market on Friday.
The Spanish firm now holds 56.32% of Mahindra CIE Automotive, which counts homegrown private equity firm Kedaara Capital as a minority shareholder.
Shares of Mahindra CIE Automotive jumped 5.6% to close at Rs 259 apiece on the NSE, where the benchmark Nifty rose 1.2%.
Mahindra Group had joined hands with the Spanish auto parts supplier in September 2013 to form a global automotive components supply network with operations in North America, South America, Europe and Asia. It had acquired a 13.5% stake in CIE SpA while retaining 20% direct ownership in the new firm, Mahindra CIE Automotive.
In 2016, Mahindra CIE Automotive acquired Kedaara-backed Bill Forge, which manufactures forged and machined components for automotive firms, for Rs 1,331 crore (around $200 million) in a cash-and-stock deal.
Mahindra CIE Automotive has 29 factories, including eight in Europe and one in Mexico. It makes engine gears, crankshafts, turbocharger housings and sheet metal stampings, among other products.
The company posted a consolidated net profit of Rs 358.4 crore on net sales of Rs 6,663 crore for the year through December 2017.