Shares of Rane Holdings rose 13 percent intraday to Rs 678.30 on December 30 after the company sold its stake in its joint venture Rane TRW Steering Systems.
"The board of directors of Rane Holdings at the meeting held on December 29 has approved the divestment of 87,383 equity shares representing 1 percent of the total shareholding of Rane TRW Steering Systems Private Limited (RTSS/JV) to ZF Automotive JV LLC, USA (ZF)," the company said in its press release.
The company sold 1 percent stake in JV for a consideration of Rs 20.16 crore.
Currently, RTSS is a 50:50 joint venture between the company and ZF.
Pursuant to this divestment, Rane Holdings will hold 49 percent and ZF will hold the remaining 51 percent shareholding in the JV.
The transaction is expected to be completed on or before January 31, 2022.
“Our relationship with ZF has gone from strength-to-strength over the past 35 years and the transfer of 1% to ZF is a major step in taking the relationship to the next level. We look forward to bring superior technology matching the customer requirements,” said Harish Lakshman, Vice Chairman, Rane Group & Managing Director, Rane TRW Steering Systems.
The JV was founded in 1987 by Rane and TRW to produce steering systems for commercial vehicles.
At 09:42 hrs, Rane Holdings was quoting at Rs 658.15, up Rs 58.10, or 9.68 percent on the BSE.
The stock touched a 52-week high of Rs 782.45 and a 52-week low of Rs 544.85 on 26 July, 2021 and 07 May, 2021, respectively.Currently, it is trading 15.89 percent below its 52-week high and 20.79 percent above its 52-week low.