Gurgaon-based automobile components firm Rico Auto Industries Ltd has sold its entire stake in the joint venture and subsidiary company KRP Auto Industries Ltd to Kailash Royal Premium Projects Pvt Ltd for Rs 20.3 crore, the company has disclosed in a statement to the Bombay Stock Exchange.
Rico Auto is backed by Ashish Dhawan, a senior managing director of ChrysCapital Investment Advisors. Dhawan held 5.38 per cent stake in Rico Auto, as on Sept 30, 2011.
Rico Auto and its subsidiaries supply high-precision, fully machined aluminum and ferrous components and assemblies to automotive OEMs (original equipment manufacturers) in India. The company caters to two-wheelers, passenger car and commercial vehicle segments, and also to system suppliers.
According to corporate disclosures, the firm signed an agreement with Kailash Royal Premium Projects in December 2009 for a JV to manufacture automobile components in Bangalore. Rico held 95 per cent stake in the company.
During the last financial year (2010-11), the JV acquired leasehold rights in Bangalore from Rico Auto against a payment of Rs 20.25 crore through 4.7 lakh shares, which took Rico’s holding to 99.95 per cent in the venture. So in effect, Rico has transferred its leasehold rights in Bangalore to its JV partner.
At 1:06 pm, shares of Rico Auto were trading at Rs 9.86 per unit on the BSE, up 3.90 per cent from the previous close.
Last month, Indian private equity firm Phi Advisors Pvt Ltd acquired around 4.7 per cent stake in automotive products maker Pricol for Rs 8.1 crore ($1.6 million).
During May, the Ruia Group, led by industrialist Pawan K. Ruia, acquired French automotive sealing company Sealynx Automotive for an undisclosed sum. Ruia had also bought Germany-based Meteor Gummiwerke and Turkish company Standard Profil AS for undisclosed amounts. In August 2010, the Ruia Group acquired the operating assets of Gumasol-Werke Dr Mayer GmbH & Co. KG, a specialist in elastomer technology and products.
