26 March 2024 – Uno Minda shares experienced a 2% increase in early trading on March 26, following the company’s announcement of a Technical License Agreement with Starcharge Energy Pte. Ltd for the manufacture and sale of Electric Vehicle Supply Equipment (EVSE) in India.
As of 09:21 am, Uno Minda was trading at Rs 663.15, marking a rise of Rs 14.60 or 2.25 percent on the BSE.
This strategic partnership allows Uno Minda to expand its EV-specific product portfolio, particularly targeting the passenger car market. The EVSE includes wall-mounted AC chargers designed for convenient home charging, a feature increasingly sought after by electric vehicle owners.
Nomura, a foreign research house, has upheld a buy rating on Uno Minda’s stock with a target price of Rs 820 per share. The agreement with Starcharge is perceived as a positive move, expanding Uno Minda’s capabilities into the EV-passenger car segment while fostering local manufacturing and reducing dependence on imports.
While the immediate market opportunity is primarily focused on original equipment manufacturer (OEM) sales, Uno Minda has a proven track record of successfully scaling up in new segments, Nomura noted.
In a separate development last week, Uno Minda invested Rs 6,04,20,600 through the subscription of 60,42,060 equity shares of Uno Minda Buehler Motor Private Limited (UMBM) at a face value of Rs 10 each, on a right issue basis. Following this investment, Uno Minda’s equity holding in UMBM remains unchanged at 50.10%.
This agreement signifies Uno Minda’s commitment to expanding its presence in the electric vehicle ecosystem and underscores its proactive approach to emerging market opportunities.
