JBM Auto to acquire balance stake in INDO Toolings

JBM Auto has entered into share purchase agreement with Sandhar Technologies to purchase the remaining 50% stake in INDO Toolings.

INDO Toolings is engaged in manufacturing automotive tools and dies at Indore, Madhya Pradesh. It is a 50:50 joint venture company of JBM Auto and Sandhar Technologies.

JBM Auto will purchase 2 lakh equity shares, or 50% equity, of INDO Toolings at Rs 14.65 each, aggregating to Rs 29.30 lakh. The transaction is at arm's length basis. The promoters & promoters group are in no way interested in the transaction.

In terms of joint venture agreement dated 21 February 2008 between JBM Auto and Sandhar Technologies, either party had a right to purchase the shares of other party in INDO Toolings post completion of 10 years from the date operation and management agreement.

Consequently, Sandhar Technologies has agreed to sell its entire shareholding in INDO Toolings to JBM Auto. Subsequently, JBM Auto's stake in INDO Toolings will increase to 100% of the paid-up equity share capital.

JBM Auto reported a consolidated net loss of Rs 25.87 crore in Q1 FY21 as compared to a net profit of Rs 17.11 crore in Q1 FY20. Net sales during the quarter slumped 75.2% Y-o-Y to Rs 129.08 crore.

JBM Auto is the flagship company of the JBM Group. The group has a diversified portfolio with presence in multiple domains such as automotive, engineering & design services, renewable energy, railways and original equipment manufacturer (OEM).

Shares of JBM Auto slipped 0.56% to Rs 230.30 on BSE. The stock hovered in the range of Rs 229.65 to Rs 233 on Friday.

The stock is 22.22% below its 52-week high of Rs 296.10 hit on 23 December 2019. It has galloped 135.96% from its 52-week low of Rs 97.60 hit on 25 March 2020.

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