Setco Automotive Limited updates on clutch manufacturing business, fund raising

The Board of Directors of Setco Automotive Limited (the "Company") in its meeting held today i.e. Friday, June 4, 2021 has, subject to the approval of the Shareholders to be obtained in an Extra-ordinary General Meeting, approved the proposals in respect of assignment and transfer of all the trademarks, designs and other intellectual property rights, relating to the clutch manufacturing business, including "LIPE" brand ("IPRs") which are owned by wholly-owned ultimate subsidiary of the Company i.e. Setco Automotive (UK) Ltd ("SAUL") and step-down wholly owned subsidiary of the Company i.e. Setco Automotive (NA) Inc. ("SANAI"), to the Company, as a related party transaction under the provisions of Section 188 of the Companies Act and the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board also approved proposal to evaluate, consider, negotiate and execute transaction documents for the proposed fund raising through issuance of equity shares and convertible instruments by Setco Auto Systems Private Limited, a wholly owned subsidiary of Company, to the schemes of the India Resurgence Fund managed by India Resurgence Asset Management Business Private Limited, for up to 27% shareholding in Setco Auto Systems Private Limited on a fully diluted basis.

Shares of SETCO AUTOMOTIVE LTD. was last trading in BSE at Rs.20.15 as compared to the previous close of Rs. 20.3. The total number of shares traded during the day was 51892 in over 206 trades.

The stock hit an intraday high of Rs. 20.65 and intraday low of 19.8. The net turnover during the day was Rs. 1043020.

Source : Equity Bulls

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