JBM Auto Ltd to acquire balance stake in INDO Toolings Pvt Ltd

JBM Auto Ltd has entered into Share Purchase Agreement with Sandhar Technologies Limited for the purchase of 2,00,000 equity shares of INDO Toolings Private Limited ("Joint Venture Company") on the terms and conditions as specified in the Share Purchase Agreement dated 9th October, 2020.

In terms of Joint Venture Agreement dated 21st February, 2008 between JBM Auto Limited and Sandhar Technologies Limited, either party has a right to purchase the shares of other party of INDO Toolings Private Limited post completion of 10 years from the date Operation and Management Agreement.

Consequently, Sandhar Technologies Limited have agreed to sell its entire shareholding in INDO Toolings Private Limited to JBM Auto Limited.

The Company is also in the business of manufacturing of Tools and Dies.

The Company holds 50% of the paid-up equity share capital of INDO Toolings Private Limited.

Subsequent to proposed acquisition, the shareholding of the Company in INDO Toolings Private Limited will increase to 100% of the paid-up equity share capital.

The consideration to be paid for the above will be Rs. 29,30,000/- (2,00,000 Equity Shares at Rs. 14.65/- each).

Shares of JBM AUTO LTD. was last trading in BSE at Rs.231.7 as compared to the previous close of Rs. 231.6. The total number of shares traded during the day was 3179 in over 445 trades.

The stock hit an intraday high of Rs. 233 and intraday low of 229.65. The net turnover during the day was Rs. 733786.

Source : Equity Bulls

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