According to reports from CNBC TV18, CIE Automotive India has invested ₹120.76 crore in its wholly owned subsidiary CIE Hosur Limited, acquiring 69.4 lakh fully paid-up equity shares on a rights basis. The shares, having a face value of ₹10 each, were acquired at ₹174 per share, including a premium of ₹164 per share. Following the acquisition, CIE Automotive India continues to beneficially hold 100% of CIE Hosur, with the transaction completed without requiring any government or regulatory approvals. The acquisition has been completed and does not constitute a related-party transaction, as the shares were acquired under the rights issue, with the promoter, promoter group and group companies having no other interest in CIE Hosur beyond the existing holding.
As reported by CNBC TV18, CIE Hosur was incorporated on August 6, 2021, under the Companies Act, 2013, and has its registered office in Hosur, Tamil Nadu. The subsidiary reported a turnover of ₹1,751.95 million in 2025, compared with ₹1,347.02 million in 2024 and ₹1,123.73 million in 2023. The funds raised through the rights issue will be used for repayment of intercorporate loans, capital expenditure and general corporate purposes. CIE Hosur operates in the automotive industry and will continue to remain a wholly owned subsidiary of CIE Automotive India.
According to CNBC TV18, for the second quarter of calendar year 2026, CIE Automotive reported a 15.5% year-on-year increase in net profit to ₹236 crore, compared with ₹204 crore in the corresponding period last year. Revenue from operations rose 11% to ₹2,621 crore from ₹2,369 crore, while EBITDA increased 16% to ₹390 crore from ₹337 crore. EBITDA margin improved to 14.9% from 14.2% a year earlier. The company's India business continued to drive growth, with revenue rising 13% year-on-year, though EBITDA margin for the domestic business declined by 80 basis points, as margins were slightly affected by price inflation arising from the conflict in West Asia.
As reported by CNBC TV18, in Europe, revenue increased 7% year-on-year, while EBITDA margin expanded by 340 basis points. The company noted that real sales growth in euro terms declined 6%, with reported revenue benefiting from a 13% positive impact from exchange rate movements. Separately, CIE Automotive announced that Rajendra Vadlapudi has resigned as Chief Executive Officer of the Iron Casting Division, effective at the close of business on July 22, 2026, after being associated with the company for 16 years. Consequently, he has also ceased to be a Key Managerial Personnel of the company, with the company not disclosing the reason for his resignation.
According to CNBC TV18, shares of CIE Automotive India Ltd ended at ₹383.65, down by ₹1.05, or 0.27%, on the BSE following the announcement. The transaction does not constitute a related-party transaction, as the shares were acquired under the rights issue, with the promoter, promoter group and group companies having no other interest in CIE Hosur beyond the existing holding.
