Japan’s Igarashi to buy out partner in India unit

MUMBAI: Japan’s Igarashi Electric will buy out its Indian partner chief executive Mukund Padmanabhan and will take over the debt from Igarashi Motors India as the Kawasaki-based electric motor maker looks to expand its business in the country.

The transaction will involve acquisition of close to 22% stake of CEO Mukund and others, while another Indian investor, Mape Advisory Group, will continue as a shareholder in the company.

The acquisition will be done through lgarashi Electric Works, Japan and subsidiary Agile Electric Sub Assembly, said a company statement on Thursday.


lgarashi Electric Works will acquire 9.52% share capital of Igarashi Motors from Mukund Padmanabhan, while Agile will acquire 11.63% stake from Padmanabhan in the target company. Mukund holds 21.15% stake in Igarashi Motors. The shares will be acquired at a price of ?269, added the statement. Igarashi Motors had a market capitalisation of ?604 crore as on August 22. Its shares lost 1.77% to close at ?191.95 on the BSE on Thursday.

Igarashi, which counts Bosch, Delphi and Cooper among its clients, makes and exports small motors for the automotive sector. The company makes DC brush motors, geared motors, flat and round type motors and parts, according to its website.

In 2013, Blackstone acquired a controlling stake in Igarashi, but two years later, sold it back to Mukund and the Japanese firm as well as Indian investment banking firm, Mape.