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Rane NSK Steering Systems is a joint venture between NSK, Japan. Post-acquisition, the company will become a wholly-owned subsidiary of Rane Holdings and named as Rane Steering Systems (RSSL), subject to necessary approvals.
RSSL will continue the existing technology license and supply agreements with NSK Steering & Control, Inc.
The company will acquired the remaining 51% stake or 91,29,000 equity shares with face value Rs 10 each aggregating to Rs 45 crore of Rane NSK Steering System.
The acquisition is subject to regulatory approvals and customary closing conditions.
Harish Lakshman, Chairman of Rane Group 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.”
Rane Holdings is the holding company of the larger Rane Group, an auto component manufacturing house. In addition to acting as a holding company, it also provides various support services to the group companies like training, infrastructure, IT and business development support.
The company’s consolidated net profit declined 20% to Rs 38.4 crore despite of 4% increase to Rs 870.2 crore in Q4 FY24 over Q4 FY23.
The counter hit an all time high of Rs 1,605.75 in today's intra-day session.
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