SAIC Group further promotes its localization strategy in the Indian market.
On April 7, Mumbai Automobile Group Co., Ltd. (SAIC Group, 600104) issued an announcement saying that the company’s holding subsidiary Mg Motor India PVT. LTD. (hereinafter referred to as "MGI") intends to introduce the equity transfer and capital increase and expansion method to introduceJSW Ventures Singapore Pte.limited (hereinafter referred to as "JSW Singapore") and other investors.
SAIC Group stated that in order to further promote the company’s international operation strategy, seize the opportunity of the rapid development of the Indian market, continue to increase the share of the MG brand in the Indian market, and effectively prevent business risks.Create more favorable conditions for sustainable and healthy development.
Specifically, in terms of equity transfer, JSW Singapore subscribed for MGI 1.012 billion shares held by Mumbai Automobile Hong Kong Investment Co., Ltd. (hereinafter referred to as "SAIC Hong Kong") for 26.51 billion Indian rupees (approximately RMB 2.256 billion), accounting for 25.94%.
In terms of capital increase and share expansion, JSW Singapore, investment funds, dealer trusts, and employee shareholding plans will jointly invest about 25.6 billion rupees for MGI.Among them, JSW Singapore subscribed 354 million shares issued by MGI, accounting for 9.06%; IIF subscribed for 312 million shares, accounting for 8%; dealers’ trust subscribed for 117 million shares, accounting for 3%(no voting rights); employeesThe shareholding plan subscribed for 195 million shares, accounting for 5%(no voting rights).
After the completion of equity transfer and capital increase and shareholding transaction, JSW Singapore’s total shareholding was 35%, which is the second largest shareholder of MGI.
SAIC Group is still the largest shareholder of MGI.After the premium transfer of equity and capital increase shares and expansion, SAIC will still retain 49%of the equity and higher proportion of voting rights of MG India Corporation. At the same time, SAIC Group is expected to increase net profit of 5 billion-7 billion yuan.
It is worth noting that because the shares subscribed for dealers ‘trusts and employees’ shareholding plan do not have no voting rights, SAIC’s voting rights are higher than 50%, and they still have control of MGI.
The announcement revealed that MGI’s previous valuation was 76.58 billion Indian rupees (about 6.6 billion yuan).
Established in February 2017, MGI was established by SAIC Hong Kong and SAIC International. Among them, SAIC Hong Kong holds 99.99%of it and SAIC International holds 1 shares.Bangalore Wealth Management
In 2023, MGI realized revenue of 88.54 billion Indian rupees with a net loss of 4.869 billion Indian rupees and a net asset of -7.381 billion Indian rupees.
In 2023, MGI sales were 62,000 units, an increase of 27.86%year -on -year, ranking eighth in the Indian market, and new energy vehicle sales ranked second in the Indian market.
JSW is the Indian Iron Giant.According to the announcement, the JSW Group is an Indian multinational corporate giant and listed on the Indian Stock Exchange and is an enterprise under the O.P. Jindal Group.JSW Singapore is set up for this transaction and is registered in Singapore. As of the end of September 2023, net assets were US $ 260 million.
Established in 2022, IIF is a fund registered on the Indian Stock Exchange. It currently raised 220 million US dollarsBangalore Stock Exchange. The fund’s investment target is in automotive companies and other manufacturing/industrial departments.
Relevant sources of SAIC Group told Surging News reporters that after the capital increase and shareholding, the development of MGI has further financial support. In the future, it will accelerate the expansion of the market, introduce products, and increase production capacity. The Group’s goal is that by 2030, MGI will rank in the Indian market.From the current eighth to fifth.
Jaipur Stock