Rane Holdings Ltd (RHL) said its Board has approved the acquisition of the remaining 51 per cent stake from the joint venture partner Japan-based NSK Ltd in Rane NSK Steering Systems Pvt Ltd.
The consolidation of shareholding in the company will cost Rane Holdings ₹45 crore, payable in cash to NSK for acquiring 91.29 lakh shares of ₹10 each in the company.
Following the acquisition, the company will become a wholly-owned subsidiary of Rane Holdings Ltd and will be renamed Rane Steering Systems Private Ltd (RSSL), pending necessary approvals, according to a statement. Despite the change in ownership, the company will maintain its existing technology license and supply agreements with NSK Steering & Control, Inc.
“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 Harish Lakshman, Chairman of Rane Group.
Rane NSK JV, which recorded a turnover of ₹1,719 crore in 2024, was carrying some financial burden in the past 5 years due to the persistent warranty issue, which had impacted the financial performance of the company. The company had to set aside approximately ₹500 crore for warranty provisions, of which ₹472 crore has already been disbursed, leaving about ₹28 crore remaining.
On the BSE today, Rane Holdings’ shares rose hit 20 per cent upper circuit, closing at ₹1,605.75 per share, which was 31 times its per-share earnings.