Quantum Magnetics Private Limited partners with Lorentic Pte Ltd in 49:49 shareholding structure.
28 Aug 2025 | 3095 Views | By Shruti Shiraguppi
Permanent Magnets Limited announced on August 28, 2025, that its wholly owned subsidiary Quantum Magnetics Private Limited (QMPL) has entered into a joint venture agreement with Singapore-based Lorentic Pte Ltd for manufacturing, marketing and distribution of neodymium magnets and related magnetic assemblies. The joint venture will operate with equal 49.02% ...
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Permanent Magnets Limited announced on August 28, 2025, that its wholly owned subsidiary Quantum Magnetics Private Limited (QMPL) has entered into a joint venture agreement with Singapore-based Lorentic Pte Ltd for manufacturing, marketing and distribution of neodymium magnets and related magnetic assemblies. The joint venture will operate with equal 49.02% shareholding between the partners, with 1.96% reserved for employee stock options.
The Board of Directors of Permanent Magnets Limited approved the joint venture agreement during their meeting on August 28, 2025. QMPL will cease to be a wholly owned subsidiary upon allotment of equity shares to Lorentic, but continues as a wholly owned subsidiary until the share allotment occurs.
The joint venture establishes equal participation between Permanent Magnets Limited and Lorentic in management and operations, including representation on the Board of Directors. Both partners will have equal decision-making power in the joint venture entity's operations.
The scope of business operations includes setting up neodymium magnets and assemblies plants, with collaboration extending to research and development of advanced magnetic products. The partnership covers both domestic and international markets.
QMPL, incorporated on May 31, 2023, reported turnover of Rs. 5.51 crore in FY 2024-25 and Rs. 0.008 crore in FY 2023-24. The company has provided turnover data for only the last two financial years since incorporation.
The joint venture aims to enable QMPL to expand its product portfolio, strengthen research and development capabilities, enhance market reach including international markets, and improve competitiveness. Permanent Magnets Limited expects the partnership to create long-term strategic value for all stakeholders.
The transaction qualifies as a related party transaction since QMPL is a wholly owned subsidiary of Permanent Magnets Limited. However, Lorentic is not related to Permanent Magnets Limited or its promoter group, and the agreement has been structured at arm's length terms.