ZF Commerical tanks 11% after Wabco Asia likely sells stake in Rs 2,287 cr block deal

ZF Commercial block deal

Shares of ZF Commercial Vehicle Control Systems tanked 11 percent in opening trade after a block deal worth Rs 2,287 crore took place on the exchanges on June 19. Wabco Asia Private Ltd was the likely seller that offloaded around 14.45 lakh shares or a 7.6 equity stake in ZF Commercial through the block deal.

While Moneycontrol could not immediately identify the parties involved in the transaction, CNBC-TV18 reported citing sources that Wabco Asia Private Ltd was planning to offload a 5 percent stake in ZF Commercial, valuing it at Rs 1,423.10 crore.

In addition, reports also suggested that post the equity sale, a lock-in period of 120 days will also be triggered for the remaining stake held by Wabco Asia.

Wabco Asia is the promoter entity of ZF Commercial, holding a 75 percent stake in the company as per its recent shareholding data.

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In February this year, ZF Commercial Vehicle Control Systems amped up its growth plans in India with a brand-new plant in Oragadam, near Chennai. Spread across 44 acres, this facility will churn out safety, automated, connected, and EV systems for both commercial and passenger vehicles.

The initial phase, covering 7,200 square feet, will on domestic growth as well as fuel exports while serving as a hub for "frugal engineering." Expansion plans are already in the pipeline for 2025.

"Our growth hinges on these new plants, as our existing ones in Mahindra World City and Ambattur are running at full capacity," shared P Kaniappan, managing director of ZF Commercial, stated in an recent interaction with CNBC-TV18. "So, our Oragadam plant is primed to be our engine for growth," he added.

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