The Board of Directors of Ramkrishna Forgings Ltd, at its meeting held today i.e., Wednesday, 14 December, 2022 has, inter-alia, considered and approved the Securities Subscription Agreement ("SSA") and Shareholders' Agreement ("SHA") with TSUYO Manufacturing Private Limited ("TSUYO") and its promoters, Mr. Lalit Baid, Mr. Vijay Kumar, Mr. Tapas Ranjan Patra and Mr. Tripurari Kumar ("TSUYO Promoters"), in connection with the investment by the Company in TSUYO for the acquisition upto 51% voting rights in TSUYO, in a phased manner and at the discretion of the Company.
The acquisition of first tranche of securities of TSUYO is expected to be completed prior to fourth quarter of the Financial Year 2022-23. The completion of acquisition of securities of TSUYO in various tranches is subject to the completion of several conditions precedents and pre-closing covenants by TSUYO and TSUYO Promoters.
TSUYO is engaged in powertrain solution for electric vehicles. TSUYO is a Make-In-India start-up company and registered as MSME in the year 2020. TSUYO is a growing company and its turnover in the Financial Year 2021-22 was INR 360.64 Lakhs.
TSUYO has advanced technology and knowhow in the field of providing powertrain solution for EV vehicles. The Company will be able to leverage the association of TSUYO to grow in the EV space in India. The proposed investment is in line with the long-term outlook of the Company in venturing in the Electric Vehicle space.