Sharda Motor Industries Ltd witnessed a significant stake acquisition by ICICI Prudential Mutual Fund, which purchased 1,50,000 shares on January 13, 2026, pushing its total shareholding above the 5% regulatory threshold. The transaction was conducted through secondary market purchases and has triggered mandatory disclosure requirements under SEBI regulations.

Acquisition Details and Shareholding Changes

The mutual fund's acquisition represents 0.26% of Sharda Motor's total share capital, bringing its cumulative holding to 30,11,799 shares. This translates to 5.25% of the company's paid-up capital, up from the previous holding of 28,61,799 shares (4.99%).

Regulatory Filing and Disclosure Process

ICICI Prudential Asset Management Company Limited filed the mandatory disclosure with BSE Limited on January 14, 2026, under reference number IPAMC/53(II)/25-26. The filing was submitted by Rakesh Shetty, Chief Compliance Officer & Company Secretary, as the authorized signatory. Notably, the fund had to submit a revised disclosure after initially mentioning an incorrect company name in their cover letter.

Company Capital Structure

Sharda Motor Industries maintains a stable capital structure with an equity share capital of ₹11,48,15,412, comprising 5,74,07,706 shares of face value ₹2.00 each. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited, providing liquidity for institutional investors like mutual funds.

Investment Intent and Market Implications

The fund explicitly stated in its disclosure that the shareholding is maintained from an investment perspective rather than seeking any controlling interest in the auto ancillary company. This acquisition reflects institutional confidence in Sharda Motor Industries, which operates in the auto ancillaries sector, and demonstrates active participation of mutual funds in mid-cap stocks.

The crossing of the 5% threshold brings additional regulatory oversight and transparency requirements for future transactions involving the fund and Sharda Motor Industries. The transaction indicates positive sentiment toward the company's prospects while maintaining compliance with SEBI takeover regulations.

Sharda Motor Industries , a leading auto component manufacturer, has reported a robust 11% year-on-year growth in consolidated revenues, reaching INR 787.2 crores for Q2 FY26. The company has also made significant strides in expanding its product portfolio and global presence.

Financial Performance

Sharda Motor Industries demonstrated solid financial performance in the second quarter of FY26:

The company's gross profit growth of 4% aligns with the overall industry growth for the same period. However, EBITDA margins faced some pressure due to rising input costs, particularly from catalyst price increases.

Strategic Partnership with Donghee

In a significant move to enhance its technological capabilities, Sharda Motor Industries has entered into a technology license agreement with Donghee Industrial Company Limited, a South Korean Tier 1 auto component player. This partnership aims to strengthen Sharda's advanced suspension portfolio, focusing on chassis and suspension technologies, particularly control arms and subframes.

The collaboration with Donghee is expected to:

• Enable local manufacturing of critical components for Indian and global OEM platforms
• Expand Sharda's product offerings to include subframes and torsion beams
• Enhance the company's competitiveness in the lightweighting vertical

New Order Wins

Sharda Motor Industries has secured notable new orders:

Lightweighting Vertical

• Two new orders for control arms and links
• Combined annual value: US$14 million
• Lifetime value: US$70 million
• Start of Production (SOP): Expected in Q1 FY28

Global Business Vertical

• New order with annual value of US$4.8 million
• Lifetime value: US$24 million
• SOP: Expected in Q4 FY27 with gradual ramp-up over 2 years

These order wins underscore the company's growing presence in the lightweighting segment and its expanding global footprint.

Innovation and Future Outlook

Sharda Motor Industries continues to focus on innovation, filing one more patent during Q2 FY26, bringing its total to 16 patents filed to date. The company is actively pursuing growth opportunities in lightweighting, exports, and domestic emission control adjacencies.

The management remains optimistic about the company's prospects, citing strong consumer demand, a favorable festive season, and improving supply chain conditions in the Indian automobile industry. With its strategic initiatives and expanding product portfolio, Sharda Motor Industries is well-positioned to capitalize on the evolving dynamics of the automotive sector.

As the company navigates the changing landscape of the auto component industry, it continues to focus on technological advancements and market expansion to drive sustainable growth in the coming years.