MUMBAI (Reuters) - Force Motors Ltd said on Wednesday it would sell up to 14.50 percent stake in its auto components joint venture with German truckmaker MAN for about 3 billion rupees, sending the former’s shares up.
MAN would acquire additional equity in the joint venture to increase its stake to 50 percent, via a rights issue for up to 2.5 billion rupees.
Force Motors currently holds 70 percent stake in the JV, MAN Force Trucks Pvt Ltd, while the German firm holds the rest.
The joint venture would start designing and make trucks and bus chassis over the next few months to widen its footprint in the Indian market.
Shares of Force Motors were up 20 percent at 74.40 rupees, their maximum daily limit, in the Mumbai market.