Rane Holdings to fully acquire steering column JV; Shares lock in 20% upper circuit

Rane Holdings will acquire the remaining 51% stake in the joint venture, Rane NSK Steering Systems, from NSK for Rs 45 crore. Rane NSK Steering Systems will be renamed Rane Steering Systems after the transaction.

By Kiran Murali calendar 01 Jul 2024 Views icon4097 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Rane Holdings to fully acquire steering column JV; Shares lock in 20% upper circuit

Rane Group’s listed holding company Rane Holdings Ltd said its board approved a proposal to acquire the remaining 51% stake in its steering column business joint venture Rane NSK Steering Systems Pvt Ltd from Japan’s NSK Ltd for Rs 45 crore.

Following the proposed acquisition, Rane NSK Steering Systems will become a wholly owned company of Rane Holdings and will be renamed Rane Steering Systems Pvt Ltd.

Rane Holdings’ share price jumped 20% on the National Stock Exchange on Monday following this announcement. The stock hit a 52-week high of Rs 1,605 per share and was locked in the upper circuit.

Rane Group and NSK formed the joint venture in 1995 that makes manual and electric power steering columns for major commercial and passenger vehicle companies, and intermediate shafts for off-highway terrain vehicles. The ownership structure was split 49:51, with Rane Group holding the minority stake.

The joint venture has four manufacturing plants, one each in Chennai, Uttarakhand, Haryana and Gujarat. The joint venture registered a turnover of Rs 1,718.7 crore in the financial year 2024, up around 14% on a year-on-year basis.

“This acquisition further expands our group’s expertise in the steering systems,” Rane Group Chairman Harish Lakshman said in an exchange filing.  The company, however, noted that Rane NSK Steering Systems will continue its existing technology license and supply agreements with NSK Steering & Control Inc.

The acquisition is subject to regulatory approvals and customary closing conditions. The deal is expected to be completed by the end of this September.

Rane Group is a popular auto component maker in India, supplying suspension systems, friction materials, valve train components and light metal casting products. It has another joint venture with ZF Group for passenger and commercial vehicle hydraulic power steering systems as well as for safety products.

Tokyo-based NSK makes precision components and mechatronic products, and systems and components for the automotive industry, including wheel bearing units and electric power-steering systems. 

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