Subsidiary rights issue: 1.8 crore shares acquired for Rs. 18 crore at Rs. 10 face value

Company subscribes to subsidiary's rights issue.

Mon 5 Oct 2026

Shares Acquired

1,80,00,000 equity shares of Rs. 10/- each

Investment Amount

Rs. 18,00,00,000/- (Rs. 18 crore), paid in cash

Holding in Subsidiary

remains at 60%

What the company told the exchanges

• The company has acquired additional 1,80,00,000 (One Crore Eighty Lakh) equity shares of face value Rs. 10/- each of Spark Minda-Toyodenso India Private Limited, its subsidiary.
• The amount for these shares aggregates to Rs. 18,00,00,000/- (Rupees Eighteen Crore Only).
• The acquisition was completed on October 05, 2026 pursuant to a Rights Issue of the subsidiary, and follows the company's earlier letter dated August 13, 2026.
• The consideration was paid in the form of cash through the normal banking channel, at par.

What the subsidiary does

• Spark Minda-Toyodenso India Private Limited belongs to the Automotive Parts & Components industry and is engaged in the manufacturing and selling of advanced automotive switches.
• It is a joint venture between Minda Corporation Limited and Toyo Denso Co., Ltd., Japan, incorporated in India on August 21, 2025.
• Total Income of the subsidiary: FY 2025-26: Rs. 83 lacs (from August 21, 2025 to March 31, 2026).

Why the shares were subscribed

• The stated object is to support the growing operational and capital expenditure requirements of the subsidiary's business.
• The acquisition does not fall within related party transactions as per the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Effect on shareholding

• Minda Corporation held 60% of the equity shares of Spark Minda-Toyodenso India Private Limited.
• It acquired the additional 1.8 Crore equity shares under the rights issue in the same ratio, so the ultimate shareholding of the company in the subsidiary remains at 60%.
• In simple terms, cash of Rs. 18 crore goes from the parent into the subsidiary, while the parent's ownership percentage in the subsidiary stays the same as before.

How a retail investor can read this

• This is a funding step by the parent company into its subsidiary through a rights issue, so the subsidiary receives capital for its operations and capital expenditure.
• Because the shares were subscribed in the same ratio, the proportionate ownership of the parent in the subsidiary is unchanged, and the subsidiary continues to be associated with the company at the same 60% level.

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