Joint Venture13 Feb 2026, 06:15 pm
PPAP Automotive Sells 50% Stake in PPAP Tokai India Rubber to Tokai Kogyo for INR 100 Crores
AI Summary
PPAP Automotive Ltd, a leading manufacturer of Automotive Sealing Systems, Interior & Exterior Automotive parts, has sold its entire 50% stake in PPAP Tokai India Rubber Private Limited to Tokai Kogyo Co. Ltd. for a cash consideration of INR 100 crores. The sale was concluded on 13th February 2026, pursuant to a Settlement Agreement effective from 1st January 2026. The proceeds from the divestment will be used to reduce net debt and fund planned strategic capital expenditure. The joint venture, established in 2012, was not fruitful and the divestment is expected to benefit the company by enabling it to reduce debt and make new investments for higher and sustainable growth.
Key Highlights
- PPAP Automotive sold its 50% stake in PPAP Tokai India Rubber to Tokai Kogyo for INR 100 Crores
- The sale was concluded on 13th February 2026
- The proceeds from the divestment will be used to reduce net debt and fund planned strategic capital expenditure
- The joint venture was established in 2012 and did not prove to be fruitful
- The divestment is expected to benefit the company by enabling it to reduce debt and make new investments for higher and sustainable growth