Shares of Rane Holdings hit upper circuit to touch multi-year high after the company on July 1 approved the acquisition of remaining 51% stake in a joint venture company Rane NSK Steering Systems (RNSS) from the JV partner NSK Japan.
After the completion of the 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 & Control, Inc," the company said in the exchange filing.
The consolidation of shareholding in the JV will cost Rane Holdings Rs 45 crore, payable in cash to NSK Japan (NSK) for 91.29 lakh shares of Rs 10/- each in RNSS. Rane Holdings already owns 49% of the share capital in the acquired company.
"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,” Harish Lakshman, Chasrman of Rane Group said.
The auto component company Rane NSK manufactures steering columns for automobiles, and clocked a turnover of Rs 1,718.73 crore in FY24.
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