Rane Holdings shares hit 20% upper circuit after nod to acquire 51% stake in JV company

The holding company of Rane Group informed the stock exchanges in a filing that its board of directors approved the acquisition of 51% equity stake in its joint venture company Rane NSK Steering Systems (RNSS) from NSK Ltd, Japan, which is the partner in the JV.

Rane Holdings owns a 49% stake in the joint venture company. At the Board meeting conducted on July 1, 2024, Rane Holdings’ Board of Directors gave a go ahead to the execution of share purchase agreement towards the remaining 51% stake in Rane NSK Steering Systems.

Once this stake acquisition is completed, Rane NSK Steering Systems will become a wholly-owned subsidiary of Rane Holdings. The stake acquisition is being conducted to consolidate the shareholding in the said joint venture.

The acquisition is subject to regulatory approvals and customary closing conditions and is expected to be completed by September 30, 2024.

The cost of acquisition is estimated to be ₹45 crore, and the acquisition will be completed through a cash consideration, which will be paid to NSK Ltd, Japan. This amount will cover the acquisition of 91,29,000 equity shares of ₹10 each in Rane NSK Steering Systems, Rane Holdings said in a press release on Monday.

"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 the Chairman of Rane Group, Harish Lakshman.