Automotive Components Company Sells Entire Stake in JV companies to Kwangsung for Rs 11.07 Crore, Focusing on Core Business
The company's consistent growth trajectory is marked by strategic expansion of its product portfolio, enhanced manufacturing capabilities, and solidified customer relationships.
Sandhar Technologies Limited has announced the execution of a Share Purchase Agreement with Kwangsung Corporation Ltd. (KSC) for the sale of its entire stake in their joint ventures, Kwangsung Sandhar Technologies Private Limited (KSTPL) and its subsidiary, Kwangsung Sandhar Automotive Systems Private Limited (KSASPL). Sandhar will receive Rs 10,08,45,560 for its 50 per cent stake in KSTPL and an additional Rs 98,65,500 for its direct 4.5 per cent stake in KSASPL. This strategic divestment aligns with Sandhar Technologies' objective to streamline business operations and concentrate on its core competencies, aiming to optimise resources and enhance operational efficiency for long-term growth. The sale is expected to be completed by June 24, 2025, with KSC, a South Korean entity and the existing JV partner, acquiring Sandhar's shares.
For the fiscal year 2024-25 (unaudited), KSTPL's consolidated revenue (100 per cent) was Rs 5282.48 lakhs with a net worth of Rs 799.05 lakhs. As a joint venture, KSTPL's revenue was not included in Sandhar's consolidated financials, meaning the sale will not impact Sandhar's reported revenues. Similarly, KSASPL's revenue (100 per cent) for FY 2024-25 was Rs 5282.48 lakhs with a net worth of Rs 809.10 lakhs. Due to KSASPL being consolidated with KSTPL, and KSTPL being a joint venture, KSASPL's revenue also did not contribute to Sandhar's consolidated financials, hence, there will be no impact on Sandhar's revenues from this sale either.
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About Sandhar Technologies Limited
Sandhar Technologies Limited, a prominent automotive component manufacturer listed on the BSE and NSE, distinguishes itself through its specialisation in safety and security systems, serving a broad spectrum of automobile segments. Prioritising Original Equipment Manufacturers (OEMs), Sandhar focuses on delivering customer-centric components that emphasise safety, security, and efficiency.
The company's consistent growth trajectory is marked by strategic expansion of its product portfolio, enhanced manufacturing capabilities, and solidified customer relationships. Under the guiding principle of ‘Growth. Motivation. Better Life,’ Sandhar is dedicated to fostering employee empowerment, driving technological innovation, and providing sustainable solutions that contribute to the advancement of the automotive industry.
Disclaimer: The article is for informational purposes only and not investment advice.