Uno Minda gains over 5% in 2 days: Here's why

Shares of the auto components entity Uno Minda in Thursday's trade (December 14) extended their previous gains and scaled levels of Rs 674.05 each at the day's high, gaining as much as 2.18 per cent. In 2 days, the stock has jumped by 5.54 per cent.
 
The gains in the stock were triggered after the company commissioned its new automotive seating systems facility under its subsidiary, Uno Minda TACHI-S Seating Private Limited (UMTS), in Bhagapura, Ahmedabad, Gujarat. The plant will manufacture mechanical parts for automotive seats for passenger cars. UMTS has already received orders from OEM and is expected to start supplies by Q4FY24, according to the company's filing with the exchange.
 
Earlier on Tuesday, Uno Minda, previously known as Minda Industries, informed in a regulatory filing that the merger of Minda iConnect with Uno Minda had been approved by the National Company Law Tribunal, Delhi. "We wish to inform you that the Scheme of Amalgamation of Minda iConnect Private Limited ("Transferor Company") with Uno Minda Limited, formerly known as Minda Industries Ltd. ("Transferee Company") and their respective shareholders and creditors, has been sanctioned by the Hon'ble National Company Law Tribunal, Court II, New Delhi ('NCLT'}, vide its Order dated 12 December, 2023.
 
As per media reports, the auto component manufacturer is carrying out an expansion drive to increase production capacity as its facilities are currently running at full capacity.
 
Uno Minda in 3 years has yielded a 244 per cent return, while its 1-year return is 21.4 per cent.
 
Commanding a market capitalisation of Rs 37,861 crore, Uno Minda is a mid-cap company. The company is a global supplier of proprietary automotive solutions and systems to original equipment manufacturers (OEMs).