New Delhi, Nov 27 (PTI) German auto component supplier ZF Group on Wednesday divested a 4.32 per cent stake in its Indian subsidiary ZF Commercial Vehicles Control System (CVCS) India for Rs 1,022 crore, according to exchange data.

According to the bulk deal data on the NSE, WABCO Asia Pvt Ltd, promoter and forming part of ZF Group sold a 4.3 per cent stake or 8.2 lakh shares of the company. The shares were offloaded at an average price of Rs 12,465.19 apiece, taking the transaction value to Rs 1,022.14 crore.

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Meanwhile, Aditya Birla Sun Life Mutual Fund acquired 1.60 lakh shares of ZF CVCS India at an average price of Rs 12,400 per piece, taking the deal value to Rs 199.24 crore.

Wabco Asia's holding in ZF CVCS India has come down to 63.17 per cent from 67.49 per cent.

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ZF Group in a filing to stock exchanges stated that it sold a 4.32 per cent stake in the Indian arm to increase financial flexibility for its growth.

The sale of shares has no effect on ZF's control of ZF CVCS India, as it is the long-term strategy of ZF to maintain its solid majority shareholding in the entity, the company said.

"The world's 3rd largest automotive supplier has sold 8,20,000 shares, equalling 4.3 per cent stake, in its listed Indian subsidiary, ZF CVCS India, to increase liquidity and financial flexibility for its growth plans," it stated.

The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market.

ZF CVCS India is the market leader in the Indian CV supplier industry and remains a very important pillar in ZF's global growth strategy, the company added.

The Friedrichshafen (Germany)-headquartered firm commenced the commercial vehicle control system business in January 2022 following the acquisition of WABCO in 2020.

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