German auto component supplier ZF Group has sold a 4.32% stake in its Indian subsidiary, ZF Commercial Vehicles Control Systems (CVCS) India for Rs10.22bn ($121m), according to exchange data.

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

WABCO Asia, a promoter within the ZF Group, offloaded 820,000 shares at an average price of Rs12,465.19 each, according to the bulk deal data on the National Stock Exchange of India (NSE).

Simultaneously, Aditya Birla Sun Life Mutual Fund purchased 1,60,000 shares of ZF CVCS India at an average price of Rs12,400 per share, valued at Rs1.99bn.

As a result of the sale, WABCO Asia's stake in ZF CVCS India has decreased from 67.49% to 63.17%.

ZF Group explained in a filing that the sale was aimed at increasing financial flexibility to support future growth.

However, the company stressed that the transaction would not affect its control over ZF CVCS India, as its long-term strategy is to maintain a solid majority stake in the entity.

ZF CVCS India, a player in the Indian commercial vehicle supplier industry, remains a significant part of ZF's global growth strategy, the company stated.

The Friedrichshafen-based firm began its commercial vehicle control system business in January 2022, following the acquisition of WABCO in 2020.

This strategic move is part of ZF's strategy to expand its footprint in the Indian market.