Talbros Automotive to sell its entire 40% stake in JV Nippon Leakless Talbros for Rs 81.8 crore

Anuj Talwar, Joint MD, Talbros Automotive Components Limited, commenting on the stake sale, said they anticipate that the funds generated from this stake sale will empower us to further unlock the full potential of our product portfolio and capabilities, enabling exploration of new prospects. (Representative Image)

Talbros Automotive Components Limited (TACL) announced on December 22 the approval by its Board of Directors for the complete divestment of its entire 40% stake in the Joint Venture company Nippon Leakless Talbros.

Following this transaction, Nippon Leakless will become the sole owner, holding 100% of the company.

TACL, known for its diversified product portfolio including Gaskets, Heat Shields, Forgings, Suspension Systems, Antivibration Products & Hoses, aims to receive Rs 81.8 crore through the stake sale, with the transaction anticipated to conclude in Q4FY24.

The proceeds from the divestment are earmarked for TACL's future capital expenditures and expansions.

The Joint Venture company, Nippon Leakless Talbros, established in 2005 with TACL owning 40% and Nippon Leakless holding the remaining 60%, specializes in manufacturing Gaskets for major 2-wheeler OEMs in India and achieved standalone sales of Rs 86.2 crore in FY23.

Anuj Talwar, Joint MD, Talbros Automotive Components Limited, commenting on the stake sale, said they anticipate that the funds generated from this stake sale will empower us to further unlock the full potential of our product portfolio and capabilities, enabling exploration of new prospects.

Anuj Talwar said: “In a strategic review of the business, the Board of Directors have approved the divestment of its entire 40% equity stake in Nippon Leakless Talbros. There are immense opportunities in the Indian Auto component industry including our current product portfolio. We believe the proceeds of this stake sale will help us further enhance the true potential of our product portfolio and capabilities as also to explore new opportunities. The proceeds will also help us invest in Business to capitalize on the strong acceptance of our products and quality by both marquee Domestic and International Automotive OEMs.”

In the trading session on December 22, the scrip settled at Rs 302.15 apiece at the BSE, which was 0.83 percent higher as against the previous day's close.