Sona BLW Precision Forgings Revises BTA with Escorts Kubota for RED Acquisition

Sona BLW Precision Forgings Ltd has made significant amendments to its business transfer agreement (BTA) with Escorts Kubota, expediting the timeline for acquiring the Railway Equipment Division (RED). Additionally, the company has approved the purchase of an industrial plot in Faridabad to support its expansion plans.

Revised Timeline and Transaction Terms

Sona BLW Precision Forgings Ltd has amended its BTA with Escorts Kubota, bringing forward the expected completion date for the RED acquisition from September 2025 to 1 May 2025. The company’s board approved these changes during a meeting on 10 February 2025, as disclosed in a regulatory filing.

The revisions include adjustments to the timeline for obtaining business-related registrations and modifications in payment terms. Under the new agreement, ₹1,600 crore of the transaction amount will be held in escrow and released in phases upon achieving specified milestones.

Purchase of Industrial Land in Faridabad

Alongside the revised BTA, Sona BLW’s board has sanctioned the acquisition of a 33,423-square-yard industrial plot in Sector 24, Faridabad, from Escorts Kubota for ₹110 crore. This land, currently occupied by Escorts Kubota’s spare parts division, is adjacent to the RED business site and is intended to facilitate Sona BLW’s future expansion. Escorts Kubota will relocate its spare parts operations before the land transfer is completed.

Sona BLW Precisions Share Performance

As of February 11, 2025, at 2:15 PM, shares of Sona BLW are trading at ₹509.90 per share, reflecting a decline of 2.92% from the previous day’s closing price. Over the past month, the stock has registered a loss of 9.18%.

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