Rane Holdings shares hit 20% upper circuit after nod to acquire 51% in JV company
Rane Holdings shares hit 20% upper circuit after nod to acquire 51% in JV company
Shares of Rane Holdings Ltd. hit upper circuit in trade Monday (July 1) after the company approved the acquisition of remaining 51% stake in a joint venture company Rane NSK Steering Systems (RNSS) from the JV partner NSK Japan.
Rane Holdings already owns 49% of the share capital in the acquired company.
Post the completion of this acquisition, RNSS will become a wholly-owned subsidiary of the Rane Holdings.
"RNSS will continue the existing technology license and supply agreements with NSK Steering and Control, Inc," the company said in a regulatory filing.
The consolidation of shareholding in the JV will cost Rane Holdings ₹45 crore, payable in cash to NSK Japan (NSK) for 91.29 lakh shares of ₹10 each in RNSS, the company said.
The acquisition is subject to regulatory approvals and customary closing conditions, the company said.
"We deeply value the relationship with NSK over the past two and half decades which helped us to create a strong position in the Indian automotive steering market. This acquisition further expands our group’s expertise in the steering systems," said Harish Lakshman, Chairman of Rane Group.