Deals29 March 2026 at 12:31 pm
Setco Automotive Ltd. to Sell Majority Stake in Subsidiary for INR 185 Crores, Awaits Further INR 255 Crores
AI Summary
Setco Automotive Ltd. has approved the sale of a majority stake in its subsidiary, Setco Auto Systems Private Limited (SASPL), to RSB Transmissions (I) Limited for approximately INR 185 Crores. The transaction also includes the sale of remaining shares worth up to INR 255 Crores, subject to fulfillment of agreed performance parameters and achievement of EBITDA-linked milestones. The sale is expected to take place in the financial year 2027-28. Additionally, a non-compete agreement has been executed, with a non-compete consideration of INR 70 Crores.
Key Highlights
- Setco Automotive Ltd. to sell 41% stake in subsidiary, Setco Auto Systems Private Limited for approximately INR 185 Crores.
- Balance 24% stake in SASPL to be sold for up to INR 255 Crores, subject to performance parameters and EBITDA-linked milestones.
- Non-compete agreement executed with a non-compete consideration of INR 70 Crores.
- Transaction to be completed in two phases: first phase in 2026, second phase in 2027-28.
- Setco Automotive Ltd. and promoters to cease usage of 'Setco' brand/trade name.