Rane Holdings Limited to Acquire Majority Stake in RNSS

Rane Holdings Ltd has announced a significant move towards acquiring the remaining 51% equity stake in Rane NSK Steering Systems Private Limited (RNSS) from its joint venture partner, NSK Ltd, Japan. This decision, approved by the Board of Directors on July 1, 2024, marks a strategic consolidation within the auto component industry.

RNSS is currently a joint venture involved in the manufacturing of steering columns. The company reported a turnover of ₹1,718.73 crore in 2024, ₹1,510.34 crore in 2023 and ₹1,432.24 crore in 2022.

The primary objective of this acquisition is to bring RNSS under full ownership as a wholly-owned subsidiary of Rane Holdings Ltd. This move is expected to streamline operations, enhance decision-making agility, and strengthen the company’s position in the competitive auto component market. The acquisition process, anticipated to be completed by September 30, 2024, is contingent upon regulatory approvals and customary closing conditions.

In financial terms, Rane Holdings Ltd. will pay ₹45 crore in cash to NSK Ltd for the acquisition of 91,29,000 equity shares of RNSS, each valued at ₹10. This transaction underscores Rane Holdings Ltd.’s commitment to expanding its market presence and leveraging synergies within its portfolio.

Upon completion, Rane Holdings Ltd will effectively control 100% of RNSS, aligning its operational strategies more closely with its overall corporate objectives. This acquisition is poised to strengthen Rane Holdings Ltd’s market position and enhance its ability to cater to evolving customer demands in the auto component sector.

Commenting on the acquisition, the Chairman of Rane Group, Mr Harish Lakshman, said, “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.”

About Rane Holdings Limited

Established in 1929, Rane Holdings Limited (RHL) is based in Chennai, India, serving as the flagship holding company of the Rane Group and holds its trademark.

On July 1, 2024, the share price of Rane Holdings Ltd opened at ₹1,355.95, touching the day’s high at ₹1,605.00, as of 12:52 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.